Pran Agro Ltd, one of the largest food processing companies in Bangladesh, will invest Tk210 crore to acquire advanced technology based equipment.
Ahsan Khan Chowdhury, chairman and chief executive of Pran-RFL Group said in a programme last year that the agro-food processing sector needs to adopt advanced technology to fulfill the plan of exporting $1 billion worth products per year.
Following this measure, Pran Agro Ltd has decided to purchase advanced technology equipment in order to increase exports. The company will also build infrastructure to set up this equipment.
Pran Agro's factory is located in Natore, which was formed by using the equity and entrepreneurship fund (EEF). It is the country's first EEF project.
The company mainly makes tomato ketchup that is sold in the local market as well as exported.
In addition, it processes fruit pulp, mustard oil, jams, jellies, spices, sauces, nuts and pulses.
A senior officer of Pran Agro told The Business Standard that the money will be invested to increase the production of high quality tomato ketchup, jams and jellies to increase exports.
"After setting up the new factory, we can export our products to the European market," he added.
Currently, Pran-RFL Group exports its products to more than 40 countries.
Pran Agro will collect Tk210 crore through issuing bonds. On Thursday, the Bangladesh Securities and Exchange Commission approved the company's issuing of the bond in a commission meeting.
As per the commission's decision, MetLife Bangladesh will invest at least 80 percent of the bond and GuarantCo Ltd will be the corporate guarantee of the bond.
The coupon rate for the seven-year bond will be 8-10 percent.
Green Delta Capital Ltd and Riverstone Capital Ltd are respectively the trustee and lead arranger of the bond.
Meanwhile, the securities regulator also has approved issuing a bond of Tk500 crore to Al Arafah Islami Bank to strengthen its capital to comply with the Basel lll requirement.