Beximco allowed to issue Tk2,625cr bond

TBS Illustration

Beximco Limited has been allowed to issue a zero-coupon bond worth Tk2,625 crore for repaying high worth debt and investing in Sreepur Township project.  

The Bangladesh Securities and Exchange Commission (BSEC) approved Beximco to issue the five-year bond at a meeting held on Sunday.

Last year, Sreepur Township Limited already raised Tk1,000 crore through IFIC Amar Bond.

Apart from investing in the project, Beximco has also been allowed by the regulator to utilise the remaining funds for existing loan payback. 

However, Beximco did not specify allocations for investment in the Township project and loan repayments.

The nature of the bond is unsecured, redeemable and non-convertible, which will be issued to investors with a 15% discount.

IFIC Investment Limited will act as arranger of the bond, where Shandhani Life Insurance will act as trustee.

In July 2023, the BSEC approved Sreepur Township to raise Tk1,000 crore through a bond, with IFIC Bank serving as its guarantor.

Within a month, Seepur Township successfully sold the bond to 7,173 investors.

The company plans to repay Tk1,600 crore to the investors upon maturity of the bond. 

Currently, IFIC-guaranteed bond is being traded on the alternative trading board at the DSE.

Earlier, in 2021, Beximco floated a Tk3,000 crore Sukuk bond to finance its two solar power plants and for expansion of its textile division. 

The investors, mainly banks and some other institutions, have the right to convert 20% of their Sukuk units after a year at 25% discounts from the 20-day average closing price of the shares prior to the record date. 

Unexecuted conversion rights can also be exercised in later years.

Beximco Limited also decided to enter a joint venture development agreement with Sreepur Township for the development of 'Mayanagar' project.

Currently, Beximco owns 75% of the project's land, while Sreepur Township owns the remaining 25%. 

The profit generated from the project will be distributed proportionally between the two entities, as stated by Beximco in its official statement.

Mayanagar, as described in the statement, is a mixed-use, multipurpose affordable real estate project planned for development on a 100-acre plot along the Nabinagar-Chandra Highway in Gazipur.

The project is set to cover a total space of 76,00,000 square feet in Gazipur, with 53,00,000 square feet allocated for commercial purposes and 23,00,000 square feet for residential use. 

The estimated project cost is Tk6,095 crore, with an expected revenue of Tk6,585 crore.

The company further said, the self-contained township will have some 18,000 apartments. 

Facilities within the township will include healthcare, education, entertainment, sports, and recreation, as well as necessary civic amenities.

The commercial space will have service apartments, hotels, offices, a convention centre, and a shopping mall. 

The entire project will be developed as a green and eco-friendly township.

Sreepur Township was incorporated in March 2023. Its paid-up capital is Tk335 crore.