The announcement of the landmark issue was made Monday at New York during an investor show titled “The Rise of Bengal Tiger: Potentials of Trade & Investment in Bangladesh”.
It was organised by the Bangladesh Securities and Exchange Commission (BSEC).
Nagad, one of the key partners of the event, received initial approval from the BSEC for the bond issue.
With the development of the capital market in Bangladesh, the bond market has also become vibrant in recent past. We consider this as a better source to raise investmen
Riverstone Capital is acting as the arranger of the bond wherein Green Delta Capital will be the trustee.
Nagad, will use the proceeds from the bond subscription for future readiness of the company’s digital infrastructure, development of network, hardware and the digital financial service platform, purchase IT equipment, marketing and promotional activities, and working capital financing.
All these are aimed at accelerating the Digital Bangladesh initiative of Prime Minister Sheikh Hasina and will be an integral part of it, the release added.
Tanvir A Mishuk, managing director and co-founder of Nagad, said, “With the development of the capital market in Bangladesh, the bond market has also become vibrant in recent past. We consider this as a better source to raise investment. Moreover, Nagad has always been innovative and that is why we chose bond market over traditional financing.”
The BSEC organised the investment roadshow with the view to showcasing the strength and opportunities of business and investment in Bangladesh for foreign investors
Professor Shibli Rubayat-Ul-Islam, chairman of BSEC, said, the 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 our industries and infrastructure.
He hoped that Nagad’s issue will encourage greater participation of our leading corporates, state-owned enterprises, municipalities in the debt capital, devising optimal financing strategies that will help them grow and prosper sustainably.
Nagad’s initiative of issuing its first corporate bond is commendable and will contribute towards setting the right direction for the capital market, he added.
The BSEC organised the investment roadshow with the view to showcasing the strength and opportunities of business and investment in Bangladesh for foreign investors.
High-level delegates from Bangladesh and the US, along with business conglomerates and investors were attending different seminars in New York, Washington DC, Los Angeles (California) and Silicon Valley (Santa Clara), said the release.