ZCZC
BSS-28
BANGLA BOND-LAUNCHING
First BDT-denominated bond launched on London bourse
DHAKA, Nov 11, 2019 (BSS) – International Finance Corporation (IFC), a member of the World Bank Group, has issued its inaugural bond in Bangladeshi Taka, raising 800 million BDT (approximately $9.5 million equivalent) to expand operations and distribution for PRAN Group.
This is the first-ever Bangladeshi Taka-denominated transaction issued in the international markets from London to enlarge the operation of PRAN Group, one of Bangladesh’s leading processed food and beverage manufacturers, and a major private sector employer in the country, said an IFC press release.
The bond, dubbed ‘Bangla’, has just been listed on the London Stock Exchange. The three-year bond was placed with asset managers dedicated to emerging markets, with the deal arranged by Standard Chartered Bank and Bank of America Merrill Lynch.
The proceeds of the bonds will be used to provide financing to the PRAN Group, to boost their processing capacities and deepen the rural distribution reach.
London Stock Exchange today welcomed the listing to its Main Market.
Finance Minister AHM Mustafa Kamal welcomed the issuance of the inaugural Bangla bond, saying, “The issuance of the ‘Bangla Taka Bond’ is the beginning of a long journey to our destination.”
Nikhil Rathi, CEO of London Stock Exchange Plc and Director of International Development, LSEG said, “This landmark bond from IFC paves the way for the opening of the global Bangla bond market and raises the profile of the Bangladeshi Taka internationally.”
“London is a leading exchange for local currency issuance, with Masala, Dim Sum and Komodo bonds raising in excess of $23 billion on our markets. We are delighted to welcome the Bangladeshi Taka to London and congratulate IFC on their pioneering transaction,” added Nikhil.
IFC Vice President for Asia and Pacific, Nena Stoiljkovic, said, “The Bangla bond, issued by triple A-rated IFC, will help provide Taka-denominated solutions for fast-growing corporates in agribusiness, manufacturing and financial services. We look forward to remaining an active partner in Bangladesh’s journey to attain greater prosperity.”
IFC Vice President and Treasurer John Gandolfo said, “The issuance of the inaugural Bangla bond is a significant capital markets innovation and milestone for Bangladesh. IFC is committed to expanding local currency financing in emerging markets. In Bangladesh, we plan to continue issuing Taka bonds to fund local currency transactions.”
The press release said IFC issues local currency-denominated bonds in emerging market currencies as part of its regular program of raising funds for private sector and domestic capital markets development.
In many cases, IFC is the first, or among the first, nonresident issuers in local currency both in domestic and international markets. IFC bonds are rated triple-A by Moody’s Investors Service and Standard & Poor’s.
Since the inception of the local currency lending program in the early 2000s, IFC has extended more than $16 billion in financing to its clients globally, in more than 50 currencies, including the Indian Rupee, Chinese renminbi, Brazilian real, South African rand, Turkish lira, Kazakh tenge, Sri Lankan Rupee, Cambodian Riel, Myanmar Kyat and Russian ruble.
BSS/PR/GM/BR/1745