MetLife Bangladesh has invested more than Tk 2.57 billion in the country's first-ever internationally certified sustainability bonds issued by Runner Automobiles.
The investment is equivalent to more than 96 per cent of the total size of the bonds.
Publicly traded Runner Automobiles in June this year received regulatory approval to raise Tk 2.65 billion through the sustainability bonds to expand its customer base and build a rooftop solar plant for its three-wheeler manufacturing plant.
The yield rate ranges from 8.5 per cent to 9 per cent per annum with a seven-year maturity period.
MetLife Bangladesh and Runner Automobiles has recently signed a deal, according to a statement issued on Thursday.
The investment will contribute to the growth of Bangladesh's bond market and diversify MetLife's already robust portfolio of investments in the country, said Ala Ahmad, chief executive officer of MetLife Bangladesh.
MetLife is the leading life insurer in the country, serving over a million customers in Bangladesh.
"Our investments in Bangladesh continue to grow, and we are proud to be a partner in launching the country's first sustainability bond."
The landmark investment demonstrates MetLife's confidence in the growth and prosperity of Bangladesh and its potential to become a more developed financial market, he added.
MetLife Bangladesh's overall investment in the country's financial sector now amounts to over Tk 170 billion, according to the statement.
The bond is fully guaranteed by GuarantCo, which is part of the Private Infrastructure Development Group. Green Delta Capital is the arranger & advisor while DBH Finance is the trustee of the transaction.
To expand Runner's eco-friendly mobility solutions and promote green energy technologies across the country, Runner has joined hands with GuarantCo for issuance of the sustainability bonds, said Subir Kumar Chowdhury, CEO of Runner Automobiles.
The sustainability bonds are meant to facilitate access to credit for those who would wish to buy lower-emitting three-wheelers, including electric-powered three-wheelers, and to support the construction of a 4MW rooftop solar plant for Runner's manufacturing unit.
This initiative will grant an opportunity to around 7,000 drivers to become owners of three-wheelers and create income-generating prospects.
It is anticipated that these three-wheelers will offer taxi services to approximately 50,000 people in rural and urban areas of Bangladesh.
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