Akij Food gets nod for Tk500 crore bond
It will raise Tk388 crore but will repay Tk500 crore upon maturity to its investors
Akij Food & Beverage Limited, one of the largest beverage conglomerates in Bangladesh, has secured approval from the stock market regulator to issue a Tk500-crore zero-coupon bond, aiming to repay existing loans and diversify its funding sources.
The Bangladesh Securities and Exchange Commission approved the move at a commission meeting held today (25 March) at its headquarters, allowing Akij Food to raise funds through the bond at face value.
According to a press release of the commission, the bond will be unsecured, non-convertible, and fully redeemable, with a tenure ranging from six months to a maximum of five years.
Given the nature of a zero-coupon bond, Akij Food & Beverage will raise approximately Tk388 crore from the capital market and use the entire amount to repay existing loans. However, the company will repay Tk500 crore to investors upon maturity, according to sources involved in the bond issuance.
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The bond will be issued through private placement to banks, non-bank financial institutions (NBFIs), insurers, institutional investors, and high-net-worth individuals. The face value of each unit of the bond is Tk10 lakh.
Sena Insurance PLC will act as the trustee, while North Star Investment (BD) Limited will serve as the fund arranger.
According to its website, Akij Food began its journey in 2006 and has since become the largest beverage conglomerate in Bangladesh. It is also the highest taxpayer in the country's beverage sector.
The company offers a diverse range of products, including carbonated soft drinks, mineral water, fruit juices, snacks, and dairy products. Its portfolio includes several leading brands such as Mojo, one of the highest-selling cola brands; Frutika, one of the most popular juice drink brands; and Speed, one of the top carbonated beverage brands in terms of both value and volume across all CSD categories.
Despite its strong and stable market position, Akij Food has so far remained absent from the capital market for long-term fundraising, as its solid reputation has enabled it to secure bank financing with ease.
After repeated efforts, capital market intermediaries have finally facilitated the company's entry into the market through this bond issuance.
Sources said that over the past five years, Akij Food's business has grown rapidly amid rising demand. In the 2024-25 fiscal year, its gross profit exceeded Tk400 crore, while its operating profit stood at over Tk200 crore as of June 2025, according to data seen by The Business Standard.
In comparison, in FY21, the company recorded a gross profit of around Tk200 crore and an operating profit of Tk60 crore.
An official from the fund arranger, speaking on condition of anonymity, told this newspaper, "The business size and market presence of Akij Food are significant, and it continues to grow steadily. However, the company has been reluctant to raise funds from the capital market, as it can easily obtain bank loans to run its operations and expand capacity."
According to its website, the company exports its products to more than 47 countries across Asia and Africa, including Malaysia, the UAE, Qatar, Kuwait, Singapore, India, Sri Lanka, South Africa, Senegal, Somalia, and Canada.
