StanChart arranges PRAN Agro’s Tk 1.5bn green bond sale

PRAN Agro Limited will raise Tk 1.5 billion through bonds to fund the company’s green and energy-efficiency projects.

PRAN Agro, a unit of PRAN-RFL Group, will use the proceeds to finance waste water recycling, waste decomposing and contract-based organic farming, according to a statement issued by Standard Chartered Bank, the lead arranger of the bonds.

“We see significant potential in the green finance space in Bangladesh, and look forward to more exciting developments in the future,” said Ahsan Khan Chowdhury, chairman of PRAN RFL Group.

Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, said: “We hope that the bonds will pave the way for others – highlighting that finance can play a role as an important force for good.”

The debt instruments have been labelled as “green bonds” as the funds will go into climate and environmental projects.

SAJIDA Foundation, an NGO focused on improving health outcomes of the poor, was the first in Bangladesh to win approval from the Securities and Exchange Commission on Apr 7 to raise Tk 1 billion from the capital market by issuing green bonds. It has cleared some other hurdles, but is yet to issue the bonds.

The BSEC greenlighted PRAN Agro’s green bonds in July.