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, said Prof. Shibli Rubayat-Ul-Islam, Chairman, Bangladesh Securities and Exchange Commission (BSEC) on Monday.
He was addressing the formal announcement of Standard Chartered Bank’s arrangement of the first Green Zero-CouponBond in Bangladesh for Sajida Foundation as chief guest.
Prof. Rubayat said “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 vibrant green bond market in Bangladesh.”
The proceeds of the bond will be utilised to finance lending to different environmentally friendlyand energy efficient initiatives of the micro-credit and SME clients of Sajida Foundation. The total face value of the bond is Tk 1,000 million.
The announcement was made at a ceremony arranged at the head office of Bangladesh Securities and Exchange Commission. Also present were Zahida Fizza Kabir, Chief Executive Officer, Sajida Foundation; Naser Ezaz Bijoy, Chief Executive Officer Standard Chartered Bank, Bangladesh 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 fund, compared to a conventional term loan. Standard Chartered was the mandated lead arranger for the transaction.