Mobile financial service company Nagad is set to issue a zero-coupon bond of Tk 5 billion with a face value of Tk 7.5 billion at the end of its five-year maturity.
The bond will be the first of its kind from a mobile financial services provider in Bangladesh.
Reportedly, Kiu Global, a US-based digital services company, already expressed interest to subscribe a Taka amount equivalent to $30 million of the bond.
The announcement of the landmark issue was made on Monday in New York, the US, during an investors’ show styled "The Rise of Bengal Tiger: Potentials of Trade and Investment in Bangladesh".
Bangladesh Securities and Exchange Commission (BSEC) organised the event.
Nagad, which is one of the key partners of the event, has received initial approval from the BSEC for issuing the bond, said a press release.
Riverstone Capital is acting as the arranger of the bond wherein Green Delta Capital will be the trustee.
Tanvir A Mishuk, managing director and co-founder of Nagad, said, "With the development of the capital market in Bangladesh, the bond market has also become vibrant in the recent past.”
“We consider this as a better source to raise investment. Moreover, Nagad has always been innovative and that is why we chose bond market over traditional financing," he said. He said, “Nagad is a fast-growing company that achieved 53 million customers within just two years and a quarter. To keep the growth momentum, it's essential to build a new digital ecosystem and infrastructure.”
BSEC chairman Prof Shibli Rubayat-ul-Islam said, "The BSEC, in collaboration with our ecosystem of regulators and stakeholders, is working towards the development of Bangladesh's capital markets, particularly the debt market.”
Prime minister’s private sector affairs adviser Salman F Rahman Fazlur Rahman, among other dignitaries, was also present at the event.
The BSEC has organised the investment road show with a view to showcasing the strength and opportunities of business and investment in Bangladesh for foreign investors.
High-level delegates from Bangladesh and the US, along with business conglomerates and investors, are attending different seminars in New York, Washington DC, Los Angeles and Silicon Valley.