Ifad Autos allowed to issue Tk300cr bond
The Bangladesh Securities and Exchange Commission (BSEC) has allowed Ifad Autos Limited, an authorised dealer and assembler of Ashok Leyland's vehicles, to issue a bond worth Tk300 crore.
The company will invest the fund in its associate company named Ifad Multi Products Limited as an equity investment.
The commission approved the bond in its meeting that was held on Wednesday, said a press release.
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The bond will be a non-convertible, secured, fully redeemable, and floating rate coupon bearing one.
The tenure of the bond will be five years, and its minimum coupon rate will be 6%. And, its face value per unit will be Tk1 crore.
The bond will be issued through private placement to financial institutions, insurance companies, institutional investors, and other eligible investors. It will be included in the alternative trading board of the Dhaka Stock Exchange.
EC Securities Ltd will act as the trustee of the bond.
In 2021, Ifad Autos bought out an 80% share of Ifad Multi Products Limited at Tk80 crore.
In the third quarter of FY22, the profit of Ifad Autos jumped by 149% year-on-year to Tk32.39 crore riding on the income of Ifad Multi Products.
