National Polymer to issue Tk300cr zero coupon bond
The minimum subscription amount of the bond will be Tk3,000 in the private placement
The Bangladesh Securities and Exchange Commission (BSEC) recently allowed National Polymer Industries to issue a zero coupon bond worth Tk300 crore.
This would be a transferable, redeemable, non-convertible, and unsecured bond, with a tenure of five years.
The company will spend this fund on refinancing and purchasing machinery, infrastructure, and construction.
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The issue price will be Tk1,000 per unit and yield to maturity will be 8% of the bond. It will be paid Tk408.95 crore at maturity.
The minimum subscription amount of the bond will be Tk3,000 in the private placement.
Local merchant bank Bangladesh Finance Ltd will act as the trustee of the bond while another investment bank Riverstone Capital Ltd will be the arranger and adviser.
The bond will be listed in the alternative trading board (ATB) of the stock exchanges.
The commission has approved this bond on the condition of personal assurances by the directors of the company.
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 Polymer Industries Ltd was listed on the capital market in 1993.
As of 31 January this year, sponsors and directors jointly held 35.41%, institutions 7.91%, and general investors 56.68% shares in the company.
