Prothom Alo English Desk

Standard Chartered has received all the regulatory approvals for issuing Taka 8.50 billion zero coupon bond, reports BSS.

This would be the first zero coupon bond issued by a foreign bank in Bangladesh, said a press release.

It marks another pioneering transaction for the bank in Bangladesh and is an important milestone in the development of Bangladesh’s debt capital market.

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The zero-coupon bond will open up alternate investment avenues for corporates and individuals. With this offering, the Bank is leveraging strong investor confidence in its strategy and outlook, and the quality of its financial position, to increase its liquidity.

The funds raised will support the bank’s overarching mission of being a partner in progress to the nation.

Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC) said that BSEC, in collaboration with our ecosystem of regulators and stakeholders, is working towards the development of Bangladesh’s capital markets particularly debt market, which will be vital for financing long-term needs of the country’s industries and infrastructure.

“We hope Standard Chartered’s issue will encourage greater participation of our leading corporates, state-owned enterprises, municipalities in the debt capital, devising optimal financing strategies which will help them grow and prosper sustainably.” he added.

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Chief executive officer of Standard Chartered Bangladesh Naser Ezaz Bijoy said, “As the only multinational universal bank in Bangladesh, we are in a unique position of channeling capital where it matters the most. As a trusted and reliable issuer with a ‘AAA’ credit rating for over a decade, we believe our offering will support the development of Bangladesh’s capital market on one hand, while offering depositors a new avenue to invest in a product that offers tax-free returns.”

He thanked regulators, BSEC and Bangladesh Bank for supporting the initiative.

Standard Chartered’s issue is a non-convertible, unsecured, fully redeemable, zero coupon bond. The maturity period for the product will be 5 years from the date of issue. Green Delta Insurance Company Limited will act as the trustee for this issue.