National Housing allowed to issue Tk374cr bond
This would be a non-convertible, fully redeemable, and unsecured, first zero-coupon bond.
The Bangladesh Securities and Exchange Commission (BSEC) has allowed National Housing Finance and Investment to issue a zero-coupon bond worth Tk374.4 crore.
This would be a non-convertible, fully redeemable, and unsecured, first zero-coupon bond.
The commission gave the approval in a meeting on Tuesday (28 November).
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The discount rate of the bond will be up to 9%, which will be issued through private placement among institutional investors and high-net-worth individuals. The unit price of the bond will be Tk1 lakh.
The company will spend this fund to provide loans in the housing sector. It will invest 10% of its income in government securities.
Local merchant bank IDLC Investments Ltd will act as the trustee of the bond while another investment bank BRAC EPL Investments Ltd will be the arranger.
The bond will be listed on the alternative trading board of the stock exchanges.
A zero-coupon bond is a bond 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.
National Housing Finance and Investment Ltd was listed on the capital market in 2009.
In the July to September quarter of 2023, its earnings per share was Tk0.41, which was Tk0.69 in the same period of the previous year.
During the quarter, its net asset value per share was Tk19.35.
As of 31 October this year, sponsors and directors jointly held 50.57%, government 9.34%, institutions 10.47%, and general investors 29.62% shares in the company.
