Bangladesh's Tk 30b Beximco sukuk gets regulator's nod - Tk 7.5b to be raised through IPO

Published 24 Jun,2021 via The Financial Express - The securities regulator has approved the proposal of issuing asset-backed Green-Sukuk bond worth Tk 30 billion by the BEXIMCO for the purpose of business expansion.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the proposal setting some conditions.

The Beximco will utilise the fund for expansion of its textile unit and implementing the solar projects of Teesta Solar and Korotoa Solar, two subsidiaries of Beximco Power Company.

Of Tk 30 billion, Tk 22.50 billion will be raised through private placements from the existing shareholders and others. The remaining Tk 7.5 billion will be raised through IPO (initial public offering).

The BSEC officials said the Beximco's existing shareholders will be entitled to subscribe the placement portion worth Tk 7.5 billion within the record date. "It's optional."

The tenure of the convertible or redeemable asset-backed green-sukuk will be five years and the offer price of the bond will be Tk 100 per unit.

The lowest subscription amount of the bond is Tk 5,000 and the market lot will consist of 50 units.

Investment Corporation of Bangladesh (ICB) is the trustee of sukuk bond while City Bank Capital Resources and Agrani Equity and Investment are working as issue managers.

At Wednesday's meeting, the securities regulator also approved the IPO proposal of Union Insurance Company.

Under the fixed price method, the company will raise a capital worth Tk 193.61 million for the purpose of fixed deposit and investing in the stock market, among others.

The company reported its EPS of Tk 0.93 and NAV of Tk 16.02 (with asset revaluation) as per the financial statement for the period ended on September 30, 2020.

The securities regulator has also approved the draft prospectus of Shanta Fixed Income whose initial size will be Tk 100 million.

As sponsor of the unit fund, Shanta Asset Management will contribute Tk 10 million and the remaining Tk 90 million will be collected from the investors through sales of units worth Tk 10 each.

Bangladesh General Insurance Company is the trustee of the fund and BRAC Bank is working as custodian.

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