Druk Green and Power Corporation Ltd, a DHI company will be issuing the Renewable Energy Bond for the first time in Bhutan.

It is a type of green bond whose primary objective is to fund environment conservation efforts unlike a financial bond.

However, just like most of the investment opportunities in recent times, it is also exclusively for Bhutanese living in foreign countries.

If you’re also a Bhutanese who live and work in Australia as DGPC wants, let’s see if this DGPC bond is worth investing.

Bond Prospects and Returns

DGPC hasn’t released the prospectus of the bond. They have announced dates for its road shows in the four cities across Australia.

It seems they want to create a hype among Bhutanese living in Australia first and then see their responses for it

If you are one of the regular followers of our Denkar’s Getaway, you must have also seen her promoting the DGPC Bond in her social media.

However, they declared its coupon rate 10% – the record highest coupon rate of a bond in Bhutan.

Investing Nu.10,000 (minimum subscriptions) will give an annual interest of Nu.1,000. What an attractive return they promise!

Bond Liquidity and Transfers

Bond as an investment security can be traded or transferred in through a security exchange.

However, have you heard of bonds being traded in the secondary market of securities in Bhutan?

No matter if it’s good or bad, once you are in, you are in for 10 years. This means in our market, coupon rate and yield will be same.

The closest product for comparison for such returns will be fixed deposit. No bank in Bhutan gives such returns.

If you hold this bond for less than 10 years & yet getting 10% returns and that also paid yearly, you won’t be on a losing side.

One more advantage of investing in this DGPC bond is you have a choice of redeeming the principal in forex.

This choice also makes it equally a risky investment. You are betting with the value of BTN against other currencies!

Investment Security of Bond

A good investment must give a peace of mind with decent returns. If we look at the financials and performances, DGPC bond looks secured.

DGPCL is one of the largest subsidiary companies of DHI – Druk Holding and Investment.

It is a green bond, and as per the constitution all natural resources state properties. So, don’t forget how public lost when all minerals and mines were nationalized by our government.

Bhutan government might become the same villain who would drag your investment to a dungeon of an imminent death.

Basically no investment will be 100% risk. This means you must do your own research and then only take investment decisions.

Will I also Invest in this Bond

If I were living and working outside Bhutan, and also have some idle cash, I would definitely invest in 10-15 units of DGPC bond.

Looking at the returns they promise and level of security, this bond looks too sexy to be ignored!

However, I won’t be too dumb to invest all in this bond. The key to reduce investment risk is diversification.

What do you think of this DGPC Bond? If you live out of Bhutan, will you invest your money in it? 

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