StanChart arranges Tk 100 crore green zero-coupon bond for Sajida Foundation

Standard Chartered Bangladesh has arranged the country's first green zero-coupon bond for Sajida Foundation.

The proceeds of the bond will be utilised to finance lending to different environment-friendly and energy-efficient initiatives of the micro-credit and SME clients of Sajida Foundation.

The total face value of the bond is Tk 100 crore, the bank said in a statement today.

The announcement was made at a ceremony arranged at the head office of Bangladesh Securities and Exchange Commission (BSEC).

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, according to the statement.

The issuance of this security will provide the Foundation with an alternative source of fund, compared to a conventional term loan.

Standard Chartered was the mandated lead arranger for the transaction.

"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," said Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh.

"Green finance holds verdant possibilities for the next phase of our growth journey. We congratulate Sajida Foundation on this landmark transaction. We are grateful to Professor Shibli Rubayat-Ul-Islam, under whose far-sighted guidance Bangladesh Securities and Exchange Commission is leading the way for Green Finance in Bangladesh."

"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," said Professor Shibli Rubayat-Ul-Islam, chairman of BSEC.

"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."

Zahida Fizza Kabir, CEO of Sajida Foundation, was also present at the event along with other senior executives of these organisations.

Standard Chartered is leading the debt capital market in Bangladesh as well as an acknowledged global leader in Asia, Africa and Middle East.

Since pioneering in 1997, the capital markets unit of Standard Chartered Bank has put together over $7 billion equivalent local and foreign currency syndicated loan/debt facilities in power, telecommunication, infrastructure, food and beverage, textile, service and other key sectors.