Beximco gets nod to issue bond

The Bangladesh Securities and Exchange Commission (BSEC) today gives the go-ahead to a zero-coupon bond for Beximco, one of Bangladesh's leading conglomerates, to raise Tk 1,500 crore from institutional and high net worth individuals.

A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount. It renders a profit at maturity when the bond is redeemed for its full-face value.

Each unit of the Beximco 1st Unsecured Zero-Coupon Bond is Tk 50,000, will be available at a discount of 15 percent and total face value on reaching maturity after 5 years will be Tk 2,625 crore, said the BSEC in a press release.

Beximco will utilise the money to repay bank loans and lend to the developer of Mayanagar, which the company earlier said is a mixed-use, multipurpose real estate project, located on a 100-acre land on the Nabinagar-Chandra Highway.

The approval comes nearly three weeks after the Beximco's board of directors gave the go-ahead to the issuance of the bond to repay the company's existing loans and invest in the joint venture with Sreepur Township.

Currently, Beximco owns 75 percent of the project land, with Sreepur Township owning the remaining 25 percent, and the profits will be shared accordingly.