Green Delta Capital closes subscription of first-ever sustainability bond of Bangladesh for Runner Automobiles PLC
Green Delta Capital Limited (GDCL) acted as Lead Arranger and Transaction to the Adviser to raise Tk2,675 million for issuance of Runner Auto Sustainability Bond with a tenor period of 7 years by Runner Automobiles PLC.
The proceeds from this bond will go towards enhancing the credit support mechanism as well as the construction of a 4MW rooftop solar plant for its 3W manufacturing facility in Bhaluka, Mymensingh, reads a press release.
This is the first ever sustainability bond in Bangladesh certified by Moody's Investors Service Singapore Pte and the features of the bond are aligned with the International Capital Market Association's (ICMA) Sustainability Bond Guidelines 2021.
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Moody's is a global integrated risk assessment firm that empowers organisations to make better decisions. Moody's Investors Service Singapore Pte is a part of the organisation dedicated to provide independent analysis of sustainable financing frameworks.
Runner Automobiles PLC is the manufacturer of 2-Wheeler and 3-Wheeler vehicles in Bangladesh. Recently, RAPLC has inaugurated the country's first manufacturing plant of three-wheeler auto rickshaw for the local and foreign markets. Through the issuance of bond, Runner will provide the credit support to the marginal customers of three-wheeler in Bangladesh. Runner will also use part of the proceeds to install 4MW rooftop solar plant for its 3W manufacturing facility.
The bond is backed by the guarantee of GuarantCo Limited, a guarantee provider company based in Mauritius.The subscribers of the bond are American Life Insurance Company Limited and Green Delta Insurance. DBH Finance PLC has been designated as the trustee of the issue, while Green Delta Capital Limited has been appointed as the Security Agent.
Green Delta Capital Limited, recently awarded as number one merchant bank by Bangladesh Securities and Exchange Commission (BSEC), boasts a rich history of working relentlessly to improve the Socio-economic prospects of the people and the society for the last 12 years. Throughout these years, the company has advised numerous corporations of various industries to arrange funds and has created a lasting impact in the community.
