It is said to be the largest ever Sukuk issuance from Bangladesh's private sector
Bangladesh Securities and Exchange Commission (BSEC) on Wednesday gave its approval to issuing a Tk3,000 crore green Sukuk bond in favour of Beximco Ltd to expand its textile unit and ensure environmental development and conservation.
It is said to be the largest ever Sukuk issuance from Bangladesh's private sector.
A Sukuk is an Islamic financial certificate, similar to a treasury bond, which complies with Shariah laws.
The bond is secured convertible or redeemable asset-backed and issued for a period of five years.
The face value of this Sukuk is Tk100 per unit. The minimum subscription of Sukuk is Tk5,000 and the minimum lot is 50, having the lowest periodic distribution rate of 9%.
Investment Corporation of Bangladesh, City Bank Capital Resources Ltd, and Agrani Equity & Investment Ltd. will be working as the issue managers.
As per the decision taken during the 779th commission meeting on Wednesday, the proposed Green-Sukuk will be issued through 22.50 billion private placements.
It will be issued through 7.50 billions existing shareholders, 15.00 billion from non-existing shareholders, and 7.50 billion through initial public offering (IPO).
Beximco will also use the proceeds in their implementation of two government-approved subsidiary renewable power generation projects Teesta Saler Ltd. and Karataya Saler Ltd, said a circular issued by the BSEC on the day.
Additionally, the commission also approved the issuance of 9,360,904 ordinary shares of Union Insurance Co. ltd with an issue price of Tk10 each through IPO.
Union Insurance will raise Tk 193,609,040 for fixed deposits, capital market investments, floor purchases through the IPO.
The company has a net asset value (NAV) with revaluation of Tk16.02 (including asset revaluation) and earnings per share of Tk0.93.
Sonar Bangla Capital Management Limited is in charge of issue management in this regard.
Furthermore, the commission approved the draft prospectus of the indefinite ‘Shanta Fixed Income Fund’ with an initial target of Tk10 crore.
Of this, Shanta Asset Management Limited will provide Tk1 crore and the remaining Tk9 crore will be open to general investors. The unit price of the fund is Tk10.00.
Bangladesh General Insurance Company Ltd. will be working as the trustee and Brac Bank as the custodian in this regard.
Prof Shibli Rubaiyat-Ul-Islam, chairman of BSEC, presided over the commission meeting.