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**SAJIDA Foundation’s Application for Tk300 Crore Bond for Microcredit Initiatives**

SAJIDA Foundation, a non-governmental, non-profit voluntary organisation, has submitted an application to the securities regulator to issue a Tk300 crore bond for the purpose of funding microcredit initiatives. This initiative is aimed at providing financial support to underprivileged individuals and communities, contributing to their economic upliftment and empowerment.

**Features of the Bond**

This will be the foundation’s second zero coupon bond, which will be unsecured, non-convertible, and fully redeemable. The bond’s tenure will be three years, with a discounted value of Tk253.8 crore, and the discount rate will range from 9.5% to 11.5%. These features are designed to attract potential investors and ensure the success of the fundraising initiative.

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The AI legalese decoder can help in simplifying the legal and technical language used in the bond’s documentation, making it more accessible and understandable for potential investors. This can aid in increasing transparency and trust in the initiative, ultimately attracting a wider range of investors.

**Key Players and Issuance**

DBH Finance PLC will be the trustee of the bond, while BRAC EPL Investments and BRAC Bank will be the arrangers. These reputable institutions add credibility to the bond issuance process. The bond will be issued among financial institutions, banks, insurance companies, and high-net-worth individuals through private placement, opening up avenues for diverse sources of funding.

**Rationale behind Bond Issuance**

Seeking anonymity, a SAJIDA Foundation official mentioned the foundation’s intention to use the funds raised from the bond market for debt diversification, which will be utilized in microfinancing. The impact of Covid-19 has resulted in a surge in demand from the foundation’s customers, making the bond market a suitable avenue to meet this growing demand. Furthermore, the devaluation of the taka and limitations on foreign loans by the Bangladesh Bank have contributed to the decision to raise funds through bonds.

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The AI legalese decoder can assist in analyzing and interpreting the complex legal and financial regulations governing the bond issuance, ensuring compliance with all necessary requirements and regulations, thus mitigating legal risks associated with the fundraising initiative.

**Prior Experience and Financial Stability**

In May 2021, the Bangladesh Securities and Exchange Commission allowed the SAJIDA Foundation to issue a Tk100 crore green zero coupon bond. Additionally, the foundation’s financial stability is evidenced by its earnings of Tk422.42 crore in the 2021-22 fiscal year, with a significant portion derived from microfinancing and other strategic investments.

**Social Impact and Organisational Overview**

SAJIDA Foundation, founded in 1987, has made significant contributions to major development activities, including microfinance, micro-insurance, health, education, and other specialized programs, designed for the underprivileged. The organization currently operates across 32 districts, covering a population of over 6 million, highlighting its extensive reach and impact. Moreover, SAJIDA’s ownership of shares in Renata Limited and its collaboration with national and international donors underscore its financial sustainability and strategic partnerships.

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The AI legalese decoder can aid in drafting accurate and legally compliant documentation for the bond issuance, thereby ensuring that all contractual arrangements, disclosures, and regulatory obligations are appropriately addressed, minimizing legal disputes or ambiguities in the future.

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