StanChart arranges Green Zero-Coupon Bond for Sajida Foundation

FE Team | Published: December 13, 2021 22:24:34

Standard Chartered Bank has arranged the first Green Zero-Coupon Bond in Bangladesh for Sajida Foundation. The total face value of the bond is Tk 1,000 million.
The proceeds of the bond will be utilised to finance lending to different environmentally friendly and energy-efficient initiatives of the micro-credit and SME clients of Sajida Foundation.
The announcement of the bond was made at a ceremony at the head office of Bangladesh Securities and Exchange Commission (BSEC) in the city, with its Chairman Prof Shibli Rubayat-Ul-Islam as the chief guest, said a press release on Monday.
Zahida Fizza Kabir, Chief Executive Officer, Sajida Foundation; Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bank, Bangladesh; and other senior executives were present on the occasion.
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.
Prof Shibli Rubayat-Ul-Islam said, "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. 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."
CEO of Standard Chartered Bangladesh Naser Ezaz Bijoy said, "Bangladesh has achieved remarkable progress over the last decade. Yet, to achieve our collective ambition of transforming into a high-income country by 2041 while building resilience to climate change and other delta challenges, more of business-as-usual will not be enough. Green finance holds verdant possibilities for the next phase of our growth journey."