BSEC approves country’s first green zero coupon bond

Bangladesh Securities and Exchange Commission (BSEC) has approved the country's first green zero-coupon bond with the help of which Sajida Foundation will raise a fund of Tk 100 crore.

The stock market regulator took this decision during a meeting of the commission yesterday.

A zero-coupon bond is a debt security that does not pay interest.

Instead, it trades at a discount, rendering a profit at maturity, when the bond is redeemed for its full face value. Face-value of the country's first bond is Tk 10 lakh.

With the bond proceeds, Sajida Foundation would finance its micro credit activities, through which environmental development would be ensured.

The tenure of the unsecured, non-convertible, and fully redeemable bond is two years, the BSEC said in a press release.

"This is the first ever green bond that has been approved by the commission," it added.

The bond would be issued to financial institutions, insurance companies, corporations, and individuals with a high net worth through private placement.

Sena Kalyan Insurance Company is the bond's trustee while Standard Chartered Bangladesh is the mandated lead arranger.