The Bangladesh Securities Commission (BSEC) has approved the country’s first zero coupon green bond with the help of which the Sajida Foundation will raise a fund of Tk 100 crore.
The stock market regulator made the decision at a committee meeting yesterday.
A zero coupon bond is a debt security that does not earn interest.
Instead, it trades at a haircut, earning a profit at maturity, when the bond is redeemed for its full face value. The face value of the country’s first bond is Tk 10 lakh.
With the proceeds of the bond, the Sajida Foundation would finance its micro-credit activities, through which environmental development would be ensured.
The term of the unsecured, non-convertible and fully redeemable bond is two years, the BSEC said in a press release.
“This is the very first green bond approved by the commission,” he added.
The bond would be issued to financial institutions, insurance companies, corporations and individuals with high net worth through a private placement.
Sena Kalyan Insurance Company is the bond trustee while Standard Chartered Bangladesh is the principal arranger at assignment.