Standard Chartered has received all the regulatory approvals for issuing BDT 8.50 billion Zero Coupon Bond. This would be the first Zero Coupon Bond issued by a foreign bank in Bangladesh.
“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 liquidity. The funds raised will support the bank’s overarching mission of being a partner in progress to the nation,” read a statement issued by the bank.
Naser Ezaz Bijoy, Chief Executive Officer of Standard Chartered Bangladesh (SCB), said, “As the only multinational universal bank in Bangladesh, we are in a unique position of channelling capital where it matters the most. As a trusted and reliable issuer with an ‘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 added, “I am grateful to our regulators, Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, especially Professor Shibli Rubayat-Ul-Islam, Chairman, BSEC and his team for supporting us in completing this pioneering transaction and their commitment towards the development of the bond market, which will play an important role in mobilising long-term financing for the sustainable growth of our economy.”
Standard Chartered’s issue is a non-convertible, unsecured and 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.
