Beximco Sukuk declares 4.5% half-yearly payment amid repayment concerns

The Investment Corporation of Bangladesh (ICB), acting as trustee of the Beximco Green-Sukuk al-Istisna'a, has approved a 4.50% periodic payment to investors for the fourth-year half-year period.

According to a stock exchange filing, the payment will cover the period from 23 December 2024 to 22 June 2025.

It will be based on the Sukuk's face value of Tk100 each, with 22 June set as the record date.

Bangladesh Export-Import Company Limited, known as Beximco and part of the Beximco Group, launched the Islamic bond in 2021 to raise Tk3,000 crore over five years from the capital market.

The trustee had previously paid 4.55% for the half-yearly period from 23 June to 22 December 2024.

The Beximco Green Sukuk is scheduled to mature in December 2026, requiring the company to repay approximately Tk2,800 crore to investors.

However, concerns are growing over timely repayment as Beximco's Textile Division, a key revenue source, remains closed.

Other income streams are limited, leaving the Teesta Solar project as the main operational asset.

Of the Tk3,000 crore raised, Tk1,500 crore came through a private offering, with Tk750 crore from existing shareholders and another Tk750 crore raised via an initial public offering.

The sukuk offered full conversion into Beximco shares. By 2024, 1.90 crore units worth Tk190 crore had been converted.

If no further conversions take place, the remaining Tk2,800 crore will be due in December 2026.

The original repayment plan relied on three projects: two solar parks and an expansion of the Textile Division.

Currently, only Teesta Solar Limited, which supplies 200MW to the national grid, is operational.

Korotoa Solar Limited has yet to begin operations, while the textile expansion, requiring Tk800 crore, has stalled following recent political changes.

As a result, Teesta Solar remains the only active project funded by the Sukuk.