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Runner Auto Sustainability Bond will begin trading on the Alternative Trading Board (ATB) of the Dhaka Stock Exchange today (Wednesday) under the 'P' category, more than two years after it raise funds from the capital market.
Runner Automobiles, a listed company, raised Tk 2.65 billion through issuing the country's first-ever Sustainability Bond with a tenure of 7 years in July 2023 to finance its eco-friendly three-wheeler business by setting up a rooftop solar power system.
The board of Dhaka bourse approved the listing of the bond on August 10 this year. Trading code for the bond is "RAPLCSBOND" and the scrip code is "55007," according to a stock exchange filing on Tuesday.
The face value of the bond is Tk 1 million and minimum subscription is Tk 1 million. The coupon rate is 8.76 per cent per year and payment will be settled semi-annually.
The tenure of the bond will be 59 months [4 years 11 months] as 25 months had already passed after raising the fund out of 7 years of tenure, according to the disclosure.
For the first two trading days, circuit breaker shall be 4 per cent and third trading day remains suspended while fourth trading day, regular circuit breaker shall be 5 per cent on reference price, according to the disclosure.
Meanwhile, MetLife Bangladesh invested Tk 2.57 billion or subscribed 96 per cent of the country's first-ever internationally certified sustainability bond issued by Runner Automobiles PLC in July 2023.
Publicly traded Runner Automobiles in June 2023 received regulatory approval to raise Tk 2.65 billion through the sustainability bond to expand its customer base and build a rooftop solar plant for its three-wheeler manufacturing plant.
The sustainability bonds are meant to facilitate access to credit for those who would wish to buy lower-emitting three-wheelers, including electric-powered three-wheelers, and to support the construction of a 4MW rooftop solar plant for Runner's manufacturing unit.
Local investment bank GreenDelta Capital was the lead arranger and advisor to the bond issuance, while DBH Finance was the trustee.
The bond is fully guaranteed by GuarantCo, which is part of the Private Infrastructure Development Group.
To expand Runner's eco-friendly mobility solutions and promote green energy technologies across the country, Runner has joined hands with GuarantCo for issuance of the sustainability bonds.
Runner Automobiles reported a loss of Tk 61 million FY24 against a massive loss of Tk 880 million in FY23. However, the company went back in green and reported profit of Tk 8 million in nine months through March this year.
About ATB
The Alternative Trading Board (ATB) of the DSE was launched in January 2023 to facilitate trading of non-listed companies, bonds, sukuk, open-ended mutual funds, and alternative investment funds.
ATB launched to reduce the cost for share transfer by private limited companies. Cost is low due to no stamp duty and lesser stringent listing requirements.
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