MetLife Bangladesh has recently invested BDT 257.5 Crore in the country’s first-ever internationally certified sustainability bond issued by Runner Automobiles Limited.
This investment will contribute to the growth of Bangladesh’s bond market and diversify MetLife’s already robust portfolio of investments in the country. MetLife Bangladesh’s overall investments in the country’s financial sectors now amount to over BDT 17,000 Crore following this investment.
The bond is fully guaranteed by GurantCo, which is part of the Private Infrastructure Development Group. Green Delta Capital Limited is the arranger and advisor, and DBH is the trustee of the transaction.
Commenting on the investment, MetLife Bangladesh’s Chief Executive Officer, Ala Ahmad, said, “Our investments in Bangladesh continue 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.”
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Subir Kumar Chowdhury, CEO Runner Automobiles PLC, said: “Since inception, Runner Automobiles PLC has endeavoured to introduce advanced and environment-friendly technologies to the automobile industry of Bangladesh and create a sustainable impact in the transportation sector. To expand Runner’s eco-friendly mobility solutions and also promote the green energy technologies in community spheres around the country, Runner has joined hands with GurantCo for issuance of a sustainability bond worth BDT 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. 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 rural and urban areas of Bangladesh.
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 of Bangladesh’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.
A deal signing ceremony was recently held at the head office of Runner Automobiles, which was attended by Runner Group Chairman Hafizur Rahman Khan; Managing Director and CEO of Runner Automobiles Subir Kumar Chowdhury; Chief Financial Officer Shanat Datta; and MetLife Bangladesh’s Chief Executive Officer Ala Ahmad; Deputy Managing Director Ala Uddin; Green Delta Capital’s Managing Director & CEO Md Rafiqul Islam; Managing Director & Chief Executive Officer of Green Delta Insurance Farzanah Chowdhury and other senior officials.
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