Euro Marketing Bond: Additional MVR 7m issued to investors

Euro Marketing has issued MVR seven million as the second payment to those who invested in the Euro Marketing bond.

The company raised funds through a bond on December 29, 2022, to build a cold storage in Hulhumalé, making it the first bond to be listed in a private placement in the country. The bond is repayable in four years at an interest rate of 7.5 percent.

The bond was oversubscribed in two months time and Euro Marketing raised MVR 25 million through the bond.

While a bond is an instrument used to raise money for investment, it is to be repaid with interest in the long run. Unlike bank loans, bonds can also raise funds from more than one investor.

Euro Marketing also issued MVR 7 million in periodic payments to investors in March last year.

First National is the lead agent in issuing the bond and was involved in structuring, conducting due diligence, preparing a prospectus and listing the bond. The company also helped secure financing for Medtech and Eye Care, apart from Euro Marketing.

As First National works to expand financing opportunities for private companies, the company believes this is an important step to broaden the country's financial sector as well.