Nagad, the mobile financial services arm of Banglades Postal Department, is set to issue a zero-coupon bond of Taka 5 billion with a face value of Tk 7.5 billion at the end of its five-year maturity as the first mobile financial services provider in Bangladesh.
Strong interest from many foreign investors has already been sighted since the nnouncement of the bond for the DFS disruptor in Bangladesh. Reportedly, Kiu Global, a US-based digital services company, has already expressed interest to subscribe a Taka amount equivalent to US$30 million of the mentioned bond.
The announcement of the landmark issue was made on Monday in New York in the United States during an investor show styled “The Rise of Bengal Tiger: Potentials of Trade & Investment in Bangladesh” organised by the Bangladesh Securities and Exchange Commission (BSEC).
Nagad, which is one of the key partners of the event, has received initial approval from the BSEC for the bond issue, said a press release on Tuesday. Riverstone Capital is acting as the arranger of the bond wherein Green Delta Capital will be the trustee.
Nagad, the fastest growing mobile money company in the world, will use the proceeds from the bond subscription for future readiness of the company’s digital infrastructure; development of network, hardware and the digital financial service platform; purchase IT equipment; marketing and promotional activities and working capital financing.