BRAC Bank to facilitate Tk 15b bond issuance for City Sugar Industries

BRAC Bank has been entrusted by City Sugar Industries Limited, a flagship concern of City Group, to facilitate fund mobilisation through the issuance of Teer 100% Mortgage-Backed Zero Coupon Bond worth Tk 15 billion (face value).

The bond issuance is subject to approval from the Bangladesh Securities and Exchange Commission (BSEC), says a statement.

This three-year bond, fully secured and structured to offer an attractive return, is designed to attract a wide range of investors, including individuals and corporate entities.

By introducing this medium-term financial instrument, the initiative is set to help deepen the country's capital market while responding to the evolving risk appetites of the local investment community.

The funds raised through the bond will be used to support City Sugar Industries in expanding its trade operations, improving cash flow management, and diversifying its financing options. This will reduce the company's reliance on traditional bank credit facilities.

The move is also expected to offer a promising investment opportunity for Bangladesh's growing investor base, which continues to seek secure and innovative financial instruments.

Tareq Refat Ullah Khan, Deputy Managing Director & Head of Corporate and Institutional Banking at BRAC Bank, and Mohammad Tanvir Hydar Pavel, Director (Finance & Commercial) of City Sugar Industries, signed an agreement on behalf of their respective institutions at the Term Sheet Signing Ceremony at the bank's head office recently.

Selim R. F. Hussain, Managing Director & CEO of BRAC Bank, and Md. Hasan, Managing Director of City Group, were present at the signing ceremony.