Anwar Galvanizing to issue Tk50cr bond for expansion

Business Desk :
Publicly listed Anwar Galvanizing Ltd, a manufacturer of galvanized iron-pipe (GI) fittings, is set to issue a Tk50 crore bond for business expansion.

In a stock exchange filing on Sunday, the company stated that 90% of the bond units will be converted into shares of Anwar Galvanizing, while the rest will remain as non-convertible redeemable coupon bearing bond units with a tenure of five years.

The coupon rate of the bond will range from 9% to 11% per annum, and will be offered semiannually.

The issuance of the bond is subject to approval from the Bangladesh Securities and Exchange Commission (BSEC) and other relevant regulatory bodies, the disclosure reads.

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The bond will be offered to potential investors including banks, non-bank financial institutions (NBFIs), insurance companies, corporate entities, high net worth individuals, existing shareholders and the general public.

In the fiscal 2022-23, Anwar Galvanizing reported a 1.87% growth in revenue, but its net profit fell by 69% compared to the previous fiscal year.

Its revenue stood at Tk79.79 crore and profit Tk5.95 crore in FY23, which was Tk72.43 crore and Tk19.34 crore respectively in the previous year.

The company’s board of directors has recommended a 10% cash dividend to its shareholders for FY23, which is subject to their approval in the annual general meeting (AGM) scheduled on 4 February 2024.