Debut of Runner Auto Sustainability Bond on ATB Market Fails to Attract Initial Trading Activity
Runner Automobiles Returns to Profitability, Debuts Sustainability Bond on DSE's ATB
Runner Automobiles PLC, a leading automobile manufacturer in Bangladesh, has made a significant comeback, returning to profitability in the nine months through March this year, posting Tk80 lakh in profit. This marks a significant improvement from the losses of Tk6.10 crore in FY24 and a staggering Tk88 crore in FY23.
The company made headlines once again on August 20, 2022, when the Runner Auto Sustainability Bond debuted on the Alternative Trading Board (ATB) of the Dhaka Stock Exchange (DSE). This is the first time a security has been listed on the ATB after a long break.
The issuer of this sustainable bond is Runner Automobiles PLC, and the face value of each unit is Tk10 lakh. GreenDelta Capital acted as the lead arranger and advisor, while DBH Finance served as the trustee for the sustainability bond. The adjusted opening price of the bond was set at Tk9.72 lakh per unit.
MetLife Bangladesh subscribed Tk257 crore, or 96% of the issuance, for the sustainability bond. The bond carries a full guarantee from GuarantCo, part of the Private Infrastructure Development Group.
The proceeds of the sustainability bond will benefit the country in three ways: generating renewable energy through rooftop solar, producing three-wheelers to improve transport accessibility for low-income groups, and providing indirect lending support to underprivileged people through installment-based vehicle sales.
Runner Automobiles Managing Director and CEO Nazrul Islam highlighted the broader impact of the sustainability bond, emphasising its role in promoting sustainable development and corporate responsibility.
In a bid to simplify and accelerate the Initial Public Offering (IPO) process, the DSE is introducing a digital application system. This system will allow companies to apply simultaneously to both the DSE and BSEC.
Asadur Rahman, chief operating officer and acting managing director of the DSE, spoke at the signing ceremony, expressing his enthusiasm about the new digital application system and the listing of the Runner Auto Sustainability Bond. He also mentioned that the DSE is planning to provide new facilities to encourage more companies to get listed.
With the addition of the Runner Auto Sustainability Bond, the DSE ATB platform now hosts seven bonds and one equity security. This is a testament to the growing interest in sustainable investments and the DSE's commitment to providing a platform for such investments.
The listing agreement for the Runner Auto Sustainability Bond was signed by DSE Senior Manager and Head of OTC Market Ishrat Jahan and Runner Automobiles Chief Financial Officer Shanat Dutta.
This is indeed a significant step forward for Runner Automobiles and the DSE, and it underscores the growing importance of sustainable investments in Bangladesh's financial market.
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