BlueMount Capital in the news: “Bangladesh: Could corporate Sukuk take off?” IFN 17th March 2021

“Bangladesh turns 50 this month, and in a fitting celebration, March 2021 also saw the country’s first corporate Sukuk announced: a US$250 million issuance from Deshbandhu Group (DGL) expected to mature in 2028. Following on from the government’s first debut sovereign Sukuk back in December 2020, the move is an encouraging one as the economy gathers steam. But with significant barriers remaining to a conducive issuing environment, can Bangladesh maintain its momentum? LAUREN MCAUGHTRY speaks to the lead arranger of the deal to learn more.

DGL, a household name in Bangladesh for its food, sugar and drinks products, is seeking to raise US$250 million from international investors in order to expand its business and repay existing debts. The firm chose the Sukuk route as a means of achieving a lower cost of capital than expensive bank loans, with the deal arranged by London based Bedford Row Capital (BRC) and Australian investment firm BlueMount Capital. “We are excited about what this transaction symbolizes for Sukuk issuance,” said Dr Scott Levy, CEO of BRC, speaking to IFN. “It’s a clear symbol of where we think the market is going to go in the next year or two, with all sorts of new issuers coming to market.”

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