Listing of the World's first Bangladesh Taka-denominated “Bangla” bond
London Stock Exchange today welcomes the listing of the world’s first ever international Bangladesh Taka-denominated “Bangla” - bonds to its Main Market. The landmark bond issuance from IFC, a member of the World Bank Group, paves the way for the opening of the global Bangla bond market to support financing of companies from Bangladesh while raising the profile of the Bangladeshi Taka internationally.
IFC raised 800million Bangladeshi Taka (approximately USD 9.5 million equivalent) of three-year bonds, which secured strong international investor support. The proceeds of the bonds will be used to provide similar tenor funding to the PRAN Group, the leading Bangladeshi processed food and beverage manufacturer and the largest private sector employer in Bangladesh, for expansion of their processing capacities and deepening the rural distribution reach.
Standard Chartered Bank and Bank of America Merrill Lynch were lead arrangers on the bond. IFC plans to continue to issue Taka bonds to fund local currency transactions in the country.
IFC Vice President, Asia and Pacific Nena Stoiljkovic:
“The first-ever Bangla bond issued by triple A-rated IFC and listed on the London Stock Exchange will help provide Taka-denominated solutions for PRAN Group to broaden its operations and boost local jobs. We look forward to remaining an active partner in Bangladesh’s journey to attain greater prosperity.”
IFC Vice President and Treasurer John Gandolfo:
“The issuance of the inaugural Bangla bond is an important capital markets innovation. IFC is committed to expanding local currency financing in emerging markets and we plan to continue issuing Taka bonds to fund local currency transactions in Bangladesh.”
The Finance Minister of Bangladesh, AHM Mustafa Kamal:
“The Issuance of ‘Bangla Taka Bond ‘ is the beginning of a long journey to our destination.”