Standard Chartered Bank arranged the first ever Green Zero-Coupon Bond in Bangladesh for Sajida Foundation.
The proceeds of the bond will be utilised to finance lending to different environmentally friendly and energy efficient initiatives of the micro-credit and SME clients of Sajida Foundation and the total face value of the bond is Tk1,000 million, reads a press release.
The announcement was made at a ceremony arranged at the head office of Bangladesh Securities and Exchange Commission.
Professor Shibli Rubayat-Ul-Islam, Chairman at Bangladesh Securities and Exchange Commission, attended the programme as the chief guest.
Also present were Zahida Fizza Kabir, Chief Executive Officer of Sajida Foundation; Naser Ezaz Bijoy, Chief Executive Officer of Standard Chartered Bank; and other senior executives of these organisations.
Sajida Foundation will use the proceeds to finance expansion of their microcredit and SME lending portfolio, through investing in new and existing projects with environmental benefits. The issuance of this security will provide Sajida Foundation with an alternative source of funds, compared to a conventional term loan. Standard Chartered was the mandated lead arranger for the transaction.
Naser Ezaz Bijoy said, "Bangladesh has achieved remarkable progress over the last decade. Yet, to achieve our collective ambition of transforming into a high-income country by 2041 while building resilience to climate change and other delta challenges, more of business-as-usual will not be enough. Green finance holds verdant possibilities for the next phase of our growth journey. We congratulate Sajida Foundation on this landmark transaction. We are grateful to Professor Shibli Rubayat-Ul-Islam, under whose far-sighted guidance Bangladesh Securities and Exchange Commission is leading the way for Green Finance in Bangladesh."
BSEC Chairman Professor Shibli Rubayat-Ul-Islam said, "Green bonds have the potential to become powerful financial tools in creating positive climate action for Bangladesh, with the growing demand for investments addressing climate risks. We commend Sajida Foundation and Standard Chartered for leading the way for green finance in the MSME sector, setting a milestone in the development of a vibrant green bond market in Bangladesh."