BANGLADESH—IFC, the largest global development institution focused on the private sector in emerging markets, has issued its inaugural bond in Bangladeshi Taka, raising 800 million BDT (about US$9.5 million) to support private sector development.

IFC revealed in a statement that the funds will be used to expand operations and distribution for PRAN Group, one of Bangladesh’s leading processed food and beverage manufacturers, and a major private sector employer in the country.

The bond, dubbed ‘Bangla’, has just been listed on the London Stock Exchange and is the first-ever Bangladeshi Taka-denominated transaction issued in the international markets.

The three-year bond was placed with asset managers dedicated to emerging markets, with the deal being arranged by Standard Chartered Bank and Bank of America Merrill Lynch.

The proceeds of the bonds will be used to provide financing to the PRAN Group, to boost their processing capacities and deepen the rural distribution reach.

Nikhil Rathi, CEO, London Stock Exchange Plc and Director of International Development, LSEG, said: “This landmark bond from IFC paves the way for the opening of the global Bangla bond market and raises the profile of the Bangladeshi Taka internationally.”

London is a leading exchange for local currency issuance, with Masala, Dim Sum and Komodo bonds raising in excess of $23 billion on its markets.

IFC Vice President for Asia and Pacific, Nena Stoiljkovic, said: “The Bangla bond, issued by triple A-rated IFC, will help provide Taka-denominated solutions for fast-growing corporates in agribusiness, manufacturing and financial services.”

IFC- a sister organization of the World Bank and member of the World Bank Group- issues local currency-denominated bonds in emerging market currencies as part of its regular program of raising funds for private sector and domestic capital markets development.

In many cases, IFC is the first, or among the first, nonresident issuers in local currency both in domestic and international markets.  Its bonds are rated triple-A by Moody’s Investors Service and Standard & Poor’s.

Since the inception of the local currency lending program in the early 2000s, IFC has extended more than $16 billion in financing to its clients globally.

The funding has been released in more than 50 currencies, including the Indian Rupee, Chinese renminbi, Brazilian real, South African rand, Turkish lira, Kazakh tenge, Sri Lankan Rupee, Cambodian Riel, Myanmar Kyat and Russian ruble.