News

SCB arranges $650m for ACI Godrej thru zero coupon bond

Standard Chartered Bank (SCB) has arranged Tk 650 million Zero Coupon Bond for ACI Godrej Agrovet Private Limited, a joint venture company formed by ACI Limited of Bangladesh and Godrej Agrovet Limited of India.

The facility is aimed at financing the company’s capital expenditures and refinancing its existing debt.

A zero-coupon bond does not make interest payments to the bondholder and the holder of a zero-coupon bond only receives the face value of the bond at the maturity.

The entire amount of the Zero Coupon Bond has been subscribed by four corporate houses of the country, thus testifying the issuer’s strong business fundamentals and reputation and as well as the lead arranger’s strong relationship with investors, said a press release.

Dhruba Jyoti Banerjee, Managing Director of ACI Godrej Agrovet Private Limited and Abrar A. Anwar, Chief Executive Officer of Standard Chartered Bank, Bangladesh were present at the closing ceremony of the bond at a hotel in the capital recently.

The ceremony was also attended by investors, trustees and the rating agency representative. Mentionable, this is the fourth Zero Coupon Bond arranged by Standard Chartered Bank, Bangladesh.