Deshbandhu Group Limited (“DGL”), one of Bangladesh’s leading industrial conglomerates, has announced a USD 250mn Sukuk issuance through the Al Waseelah programme, the first corporate Sukuk for a Bangladeshi company. Bangladesh is one of the fastest growing economies in the world, therefore DGL’s position as a leader in garments and sugar export represents a unique opportunity for investors.
International lead-manager BlueMount Capital, alongside Bedford Row Capital (“BRC”), a global non-bank structuring specialist, and Al Waseelah, an award-winning Sukuk issuance platform are pleased to announce the book-building process for Deshbandhu Group Ltd. (“DGL”) has opened. On closing, the Sukuk will be listed on the Frankfurt Stock Exchange.
DGL is a Dhaka-based conglomerate with operations across several sectors and employs around 15,000 people with an annual turnover of c. USD 330mn. DGL has established and acquired subsidiaries and controlled entities with interests in 16 businesses covering food, fibre and textiles, trading, power, and property. Being based in one of the fastest growing economies in the world, DGL takes its role in society seriously by offering healthcare, housing for women, schooling for children and providing access to hospitals, in line with U.N. SDGs.
The Sukuk will help DGL in their next growth phase by financing the repayment of current outstanding debt, investments in new technology and scaling up capacity of its group businesses. The new investment is expected to create around 5000 jobs and increase foreign exports and internal market share in different sectors, e.g., from 11% in the beverage industry to 25%.
Speaking about this launch, Golam Mostafa, Chairman of DGL said: “During the pandemic, even as the entire economy underwent a difficult period, DGL continued to expand the business and made new investments of around USD 100mn. It is our commitment to supporting Bangladesh and its people that has driven us to consistently invest in our people, infrastructure and technology to deliver high quality products.”
Dr. Saliba Sassine, Managing Director of BlueMount Capital, mentioned: “We are pleased to be part of the first international Sukuk issuance by a private corporation from Bangladesh, the next Asian Tiger economy and one of the fastest growing economies in the world. We are committed to providing innovative financing solutions for companies wanting to access the Sukuk market.”
Dr. Scott Levy, CEO of BRC, added: “Being part of the first corporate Sukuk out of Bangladesh is a significant achievement. DGL provides an outstanding example of how deeply ethical businesses can grow and prosper; they are a unique blend of profitable, growing, and caring. In the demand for broader diversity of investment opportunities, this Sukuk is a blueprint for more issuances from emerging economies.”
