Pran Agro gains financial closure of $25m bond

Pran Agro has achieved financial closure of a Tk 2,100 million ($25 million) non-convertible, redeemable bond, with credit guarantee from GuarantCo and fully subscribed by MetLife Bangladesh.  

Financial closure is defined as a stage when all the conditions of a financing agreement are fulfilled prior to the initial availability of funds. The development came about on May 19.

Proceeds of the seven-year fixed coupon bond will be used to develop critical infrastructure in the agricultural supply chain and support the company's expansion plans in local and export markets, says a press release.

Rated AA- by Fitch and A1 by Moody's, GuarantCo is a part of Private Infrastructure Development Group.

Green Delta Insurance Company acted as the bond trustee and security agent to the issue while independent Bangladesh-based merchant bank Riverstone Capital acted as financial advisor to Pran Agro and arranger to the issue.

The agricultural and food processing company, a sister concern of Pran-RFL Group, is working with 1,00,000 registered contract farmers and employs 110,000 people.