City Bank Capital helps Pran-RFL raise Tk 3b through Sukuk

September 04, 2023 00:00:00

Banga Building Materials Limited, a sister concern of the Pran-RFL Group, has secured Tk 3.00 billion through the issuance of Bangladesh's second corporate Sukuk. The Sukuk was issued to reputed banks of Bangladesh, with City Bank Capital serving as the arranger and issue advisor. The closing ceremony for the Sukuk took place on August 31, 2023, at the Radisson Blu Water Garden in Dhaka. Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Shibli Rubayat Ul Islam was present as the guest of honour at the event. Attendees at the event included Uzma Chowdhury, finance director, PRAN-RFL Group, City Bank Capital's MD and CEO Ershad Hossain, Investors and officials from the 11 investing banks and Incepta Pharmaceuticals Ltd, representatives from the BSEC, Banga Building Materials Limited, as well as media representatives and other stakeholders were also present.

Banga Building Materials Limited, a sister concern of the Pran-RFL Group, has successfully secured BDT 3.00 billion through the issuance of Bangladesh's second corporate Sukuk.

The bonds were issued to reputed banks of Bangladesh, with City Bank Capital serving as the arranger and issue advisor, said a statement.

Sukuk is a form of Islamic finance instrument adhering to Shariah law, enabling investors to earn returns on their investments in a manner consistent with Islamic finance principles. The ethical and sustainable nature of this bond has been gaining traction in Bangladesh. This achievement follows City Bank Capital's successful organisation of the inaugural Beximco Green Sukuk, the first corporate Sukuk offering in Bangladesh.

The Sukuk received an enthusiastic response from renowned banks and investors in Bangladesh. The funds generated from this Sukuk will be directed towards refinancing BBML's existing equipment and procuring new machinery.

The closing ceremony for the Sukuk occurred on August 31, 2023, at the Radisson Blu Water Garden in Dhaka. Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Shibli Rubayat Ul Islam, guest of honor of the event, commended BBML for its prosperous fundraising initiative. He underscored the significance of fixed-income securities and Islamic instruments in supporting the country's infrastructure development.

The other Guests of Honor of the event were Dr. Duncan Overfield, Deputy Development Director - The Govt. of UK, and Mr. Layth Al-Falaki, CEO of GurantCo.

Reflecting on the successful Sukuk issuance, Mr. Ahsan Khan Chowdhury, Chairman and CEO -of PRAN-RFL Group, remarked, "We are thrilled to have effectively raised BDT 300 crore through the Sukuk offering. This accomplishment reflects the strong demand for our products and services and the trust that investors place in our business model. We extend our gratitude to our investors, City Bank Capital, and all other stakeholders who contributed their support and guidance throughout this endeavor."

Mr. Ershad Hossain, CEO & MD of City Bank Capital, added, "We take pride in our role as the coordinator and offering advisor for the second corporate Sukuk. This achievement marks a significant milestone for our company, and we are delighted to have contributed to its success. We firmly believe that Sukuk holds tremendous potential in Bangladesh and eagerly anticipate collaborating with more companies in the future."