Mir Akhter gets BSEC nod to issue Tk250cr bond
The bond will be issued at a 7%-9% discount price considering the current bond market situation
The Bangladesh Securities and Exchange Commission (BSEC) on Monday approved Mir Akhter Hossain Ltd, a construction company, to issue a zero-coupon bond worth Tk249.9 crore.
A zero-coupon bond is issued at a discount from its face value and the bondholders receive the face value at maturity. In Bangladesh, income from zero-coupon bonds is subject to no income tax for individual and corporate investors.
It would be a non-convertible, fully redeemable, and unsecured bond with a tenure of four years.
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The company will spend this fund on refinancing and increasing working capital.
The bond will be issued at a 7%-9% discount price considering the current bond market situation. Its issue price will be Tk5 lakh per unit.
Unitholders will be paid fully every six months of the bond's maturity, starting after the first 18 months.
Local investment banks UCB Investment and IDLC investment will act as the trustee and the lead arranger of the bond, respectively.
The bond will be listed on the alternative trading boards of both Dhaka and Chittagong stock exchanges.
Mir Akhter Hossain Ltd began its construction business in the late 1960s as a partnership firm and became a private company in 1980.
It has a large portfolio of accomplished and ongoing construction projects that include roads, bridges, railways, airports, power plants, large hotel infrastructures, public offices, and commercial buildings.
The company was listed on the stock market last year. The current paid-up capital of the company is Tk120.77 crore.
Its shares closed at Tk62.2 each on Monday on the Dhaka Stock Exchange.
As of 31 January, sponsors and directors jointly held 48.58%, institutions 4.19%, and general investors 47.23% of the company shares.
