MetLife Bangladesh has invested Tk 257.5 crore in the country’s first ever internationally certified sustainability bond issued by vehicles maker— Runner Automobiles.
This investment will contribute to the growth of Bangladesh’s bond market and diversify MetLife’s already robust investments portfolio in the country.
MetLife Bangladesh’s overall investments in the country’s financial sectors now stand at over Tk 17,000 crore following this new investment, said a media statement.
The bond is fully guaranteed by GurantCo, which is part of Private Infrastructure Development Group. Green Delta Capital is the arranger and advisor, while DBH is the trustee of the transaction.
Commenting on the issue, Ala Ahmad, chief executive officer at MetLife Bangladesh said, “Our investments in Bangladesh is continuing to grow, and we are proud to be a partner in launching the country’s first sustainability bond.”
“This landmark investment demonstrates our confidence in the growth and prosperity of Bangladesh and its potential to become a more developed financial market,” he added.
Subir Kumar Chowdhury, chief executive officer at Runner Automobiles PLC, said, “Since the inception, Runner Automobiles has endeavoured to introduce advanced and environment-friendly technologies in the country’s automobile industry and create a sustainable impact in the transportation sector.”
“To expand Runner’s eco-friendly mobility solutions and promote the green energy technologies in community spheres around the country, Runner has joined hands with GurantCo for the issuance of a sustainability bond worth Tk 267.5 crore, the first ever internationally certified bond in Bangladesh.”
Runner Automobiles has issued the sustainability bond to facilitate access to credit for customers who wish to buy lower-emitting three-wheelers, including electric-powered three-wheelers, and to support the construction of a 4MW rooftop solar plant for its manufacturing facility, as per the press statement.
This initiative will grant an opportunity for around 7,000 drivers to become owners of three-wheelers, leading to income-generating prospects for drivers and downstream vehicle maintenance companies.
It is anticipated that these three-wheelers will offer taxi services to approximately 50,000 people in the country’s rural and urban areas.
In addition to making an employment-generating product more affordable for lower-income consumers in the country, the transaction is also Paris Aligned as it will facilitate the implementation of the government’s transport and climate strategy.
Furthermore, the rooftop solar facility installed as a component of the transaction will significantly reduce reliance on the grid and backup diesel generators, lowering the carbon footprint, and the three-wheel vehicles backed by the transaction represent an environmental improvement compared to other vehicles relying on other fossil fuels.
Recently, a deal signing ceremony was held at the Runner headquarters in presence of high officials of both the parties.
Runner Group Chairman, Hafizur Rahman Khan; Runner Automobiles Managing Director and CEO, Subir Kumar Chowdhury; and its Chief Financial Officer, Shanat Datta were present on the occasion.
On behalf of MetLife Bangladesh, its Chief Executive Officer, Ala Ahmad; Deputy Managing Director, Ala Uddin; and on behalf of Green Delta Capital, its Managing Director and CEO, Md Rafiqul Islam attended the agreement signing ceremony.
