November 29, 2021, 5:38 am

Staff Correspondent

2021-06-23 14:01:22 BdST

BSEC clears Tk 3,000cr Sukuk bond for BEXIMCO

The Bangladesh Securities and Exchange Commission on Wednesday approved the issuance of a Tk 3,000 crore green Sukuk bond in favour of BEXIMCO Limited to finance construction goals and equipment procurement.

It is the largest Sukuk issuance from the Bangladeshi private sector.

The decision came at a commission meeting presided over by its Chairman Shibli Rubayat-Ul-Islam, a BSEC press release said.

Sukuk is an Islamic financial certificate, similar to a treasury bond, which complies with the Shariah.

Per unit price of the bond is Tk 100. The tenure of the bond is five years. The base rate of Sukuk has been set at 9 percent, which means investors would get a 9 percent secured annual return.

As per the commission’s statement, half of the Tk 3,000-crore fund would be raised through private placement and Sukuk worth Tk 750 crore would be raised from the existing BEXIMCO shareholders.

The remaining Tk 750 crore would be raised through an initial public offering in compliance with the commission’s public offer rules.

The Investment Corporation of Bangladesh (ICB) will act as the trustee. The City bank Capital Resources Limited and Agrani Equity & Investment Limited will act as the issue managers of the bond.

The Sukuk will be issued for the purpose of construction of the solar projects of Teesta Solar and Korotoa Solar, the two subsidiaries of Beximco Power Company, and financing and refinancing the machinery and equipment required for expansion of Beximco’s textile division.

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