PRAN Agro II
GuarantCo guarantees BDT 2.6 billion (USD 24 million) domestic bond issuance by PRAN Agro to finance its expansion plans.
GuarantCo provided PRAN Agro, one of the leading agro-processing companies in Bangladesh and a sister company of PRAN RFL Group, with a partial credit guarantee to support a BDT 2.6 billion (c. USD 24 million) onshore bond with an eight-year tenor to attract domestic institutional capital from Bangladesh. The bond proceeds will allow PRAN Agro to finance its infrastructure expansion plans.
The proceeds from the GuarantCo guaranteed bond will enable PRAN Agro to finance the second part of their expansion plan to increase its production capacity, in response to increased demand for its products and the potential for increased exports. The project includes the construction of additional factory buildings and the purchase of machinery for five product categories: noodles, confectionary, culinary, cooking oil and bakery products.
The transaction is expected to provide around 240 new contract farmers with a reliable source of income and will create 150 short term jobs, and 280 operations and maintenance jobs of which around 60 percent will be for women.