GuarantCo provides Runner Automobiles with a guarantee for BDT 2.67 billion (c. USD 27 million) to support the first internationally certified sustainability bond in Bangladesh
Summary
GuarantCo, part of the Private Infrastructure Development Group (PIDG), provides Runner Automobiles with a 100 percent guarantee for issuance of an internationally certified sustainability bond worth BDT 2.67 billion (c. USD 27 million). 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 Bangladeshs transport and climate strategy. The transaction will make a direct contribution to SDG 11a which seeks to improve economic and social links between urban, peri-urban and rural areas and SDG 8.5 which aims to achieve full and productive employment and decent work for all women and men.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. A portion from the fund will be spent to install a 3.4MW greenfield rooftop solar system at the Runners automobile manufacturing plant.Our investments in Bangladesh continues to grow and we are proud to be a partner in launching the countrys first sustainability bond. Rafiqul Islam, Managing Director and CEO of Green Delta Capital Limited, said:Being the lead arranger and advisor on the transaction, I would like to thank everyone for successful closure of the deal.