Bangladesh's Beximco Sukuk IPO subscription time extended till Sept 6

Published 24 Aug,2021 via The Financial Express - Beximco's Sukuk Bond IPO subscription for Tk 7.50 billion has been extended till September 6 as the bond received a lukewarm response from investors in the first phase.

In the first phase, the initial public offering subscription for the country's largest private Sukuk bond started on August 16 and ended on August 23.

The bond was subscribed to only 7.42 per cent in the first phase. The offer received bids worth Tk 556.16 million from the 71 institutional investors, according to the Dhaka Stock Exchange (DSE).

The subscription of Beximco Green Sukuk Al Istisna'a by the eligible investors through the electronic subscription system of the stock exchanges has already been started on August 16 and will be continued till 5.30 pm of September 06, said the company in a filing with the DSE on Tuesday.

The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC) has accorded consent to Beximco as an originator for issuance of Beximco Green-Sukuk Bond of Tk 30 billion on July 8 this year.

Of Tk 30 billion, Tk 15 billion will be raised through private placement, Tk 7.50 billion from the existing shareholders of Beximco as rights option under private offer and Tk 7.50 billion through IPO (initial public offering).

Beximco will utilise the proceeds for implementing the solar projects of Teesta Solar and Korotoa Solar to produce electricity from renewable energy and transmit it to the national grid.

The company will also utilise the proceeds for expansion project financing and refinancing (non-interest bearing) of the textile machinery for expansion of the textile division of Beximco.

The tenure of the asset-backed green-Sukuk will be five years and the face value of the bond is Tk 100 per unit. The minimum subscription amount is Tk 5,000 (or its multiples) and there is no maximum bar.

Investment Corporation of Bangladesh (ICB) is the trustee, and City Bank Capital Resources and Agrani Equity and Investment are issue managers of the Sukuk.

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