NN Online Report:
Beximco Ltd has decided to issue bonds to raise Tk 1,500 crore to repay bank loans and invest in Sreepur Township Ltd in what could be the largest corporate zero-coupon bond issuance in Bangladesh.
In 2021, the industrial conglomerate sold sukuks worth Tk 3,000 crore, the highest amount involving the Shariah-compliant bond in the corporate sector.
On Sunday, Beximco’s board took the decision to issue the redeemable non-convertible, non-tradable zero-coupon bond.
A zero-coupon bond is a debt instrument that does not pay interim coupons but instead trades at a deep discount, rendering profit at maturity, when the security is redeemed for its full face value.
The discount rate of the Tk 1,500 crore bond is 15 percent per annum, again the highest among all the corporate bonds unveiled in the country. Zero-coupon bonds enjoy the tax rebate as well.
This means the subscription to the bond could be an attractive investment option for the investors, according to industry people.
Beximco said it will enter into a joint venture development agreement and invest in Sreepur Township to develop Mayanagar, a real estate project, over 100 acres of land in Savar’s Nabinagar. It will comprise 18,000 flats.
The township will include healthcare, education, entertainment, sports and recreation facilities as well as all civic and lifestyle amenities, it said in a disclosure.
It will have a commercial space of 5 million square feet and includes serviced flats, hotels, offices, a convention centre and a shopping mall.
Presently, 75 percent of the project land is owned by Beximco and 25 percent by Sreepur Township and the profit will be shared accordingly, the disclosure said.
The filing said an architectural and engineering consultancy firm has been appointed for the design, development and supervision of the project on a turnkey basis. An international EPC contractor will be appointed for the implementation of the project.
Five months ago, Sreepur Township mobilised Tk 1,000 crore for a project. It was said at that time that the housing project would be located over 37 acres.
Shares of Beximco closed unchanged at Tk 115.60 on the Dhaka Stock Exchange yesterday.
