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Bangladesh's largest conglomerate commenced Unsecured Zero Coupon Bond's subscription

By The Economist

The Beximco 1st Unsecured Zero Coupon Bond's subscription commenced in Dhaka.  The first tranche will conclude on May 15, 2024. Bangladesh Securities and Exchange Commission (BSEC) gave the approval on April 3, 2024, granting authorization to BEXIMCO Group to issue bonds totaling Tk1,500 crore.

BEXIMCO Group is Bangladesh's largest conglomerate which currently has operations and investments across a wide range of industries including textiles, pharmaceuticals, PPE, ceramics, real estate development, construction, trading, marine food, information and communication technologies, media, DTH, financial services, and energy. BEXIMCO Group's subsidiaries export products to more than 55 countries worldwide. The company  has retail outlets in South Asia and Eastern Europe. It operates one of the largest integrated textile production businesses in Asia. Its main manufacturing base is the BEXIMCO Industrial Park in Gazipur, Bangladesh. Beximco Pharma, the group's pharmaceutical producer, was the first Bangladeshi company to be listed on the London Stock Exchange.

IFIC Investment Limited is the arranger and Sandhani Life is the trustee of this bond. The Beximco 1st Unsecured Zero Coupon Bond offers an unprecedented discounted rate of 15%, the highest in the market, translating to a monthly return of Tk1,250 per lakh. This non-convertible, redeemable, unsecured bond aims to raise Tk1,500 crore, of which Tk1000 crore will be used for providing as a loan to Sreepur Township Limited for the development of the Mayanagar project, while the remaining Tk500 crore will be used to repay existing bank loans of Beximco Ltd.

The investment is particularly attractive due to its high return rate, where an investment of one lakh taka will yield a total return of Tk1,75,000 at the end of five years, including the principal amount. The returns are especially appealing for Non-Resident Bangladeshis (NRBs) and local wage earners, offering one of the best investment avenues available.

The bond subscription has a minimum investment threshold of Tk 50,000, with no upper limit, making it accessible to a broad range of investors. This opportunity is available on a first-come, first-served basis, emphasizing its limited nature and the potential for a quick sell-out due to its attractive features.

Sources:
BEXIMCO zero coupon bond subscription begins

BEXIMCO


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