Publish : 12 Jan 2022, 09:32 PMUpdate : 12 Jan 2022, 09:33 PM
A total of 20 local banks have invested Tk1,654 crore out of Tk3,000 crore in the first privately owned Shariah-based Green Sukuk bond, courtesy of Beximco.
Authorities of both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) said that Beximco's green Sukuk bonds would be traded simultaneously on the country's two bourses from Thursday.
The five-year term asset-backed Green Sukuk is convertible, redeemable and participative, the memorandum says.
According to the DSE, the newly listed bonds will be traded in the main market. The face value of the five-year bond of Tk3,000 crore is Tk100. It will start trading at this price.
However, as per the rules, investors will not get a 30 working days loan facility to buy the shares of this bond as the transaction will start in 'N' category.
The company will allocate 50% of the Sukuk issue through private placement, 25% will be offered to the existing shareholders of the company, and the rest through public offering.
With the Sukuk proceeds, the company plans to funnel Tk2,200 crore into a 200MW solar plant in Gaibandha and a 30MW solar plant in Panchagarh.
Together, they represent the largest solar project in the country. Revenue generation of the two solar plants is guaranteed by a 20-year Power Purchase Agreement (PPA) with the government, according to the memorandum.
The government has recently scrapped several coal-fired power projects and emphasized on climate-friendly green power generation projects instead.
Beximco seeks to cash in on the lucrative incentives offered by the government in green power projects; its power plants will enjoy tax holiday until 2034, duty-free import and certain tariff and VAT concessions.
The remaining Tk800 crore will be used to install high-speed and energy-efficient machinery, expand and modernize the existing green infrastructure of Beximco’s textile division.
AB Mirza Azizul Islam, economist and former financial adviser to the caretaker government, also expressed optimism about how this new bond would fare.
Sukuk bonds are a good initiative of the government for Shariah-abiding investors. In this case, as the banks come forward, the confidence of general investors will undoubtedly increase, he also said.
He also said that now tax rebates should be considered for investing in Sukuk bonds to encourage ordinary investors to invest in them.
So, I think Sukuk should be given tax exemption after considering the two markets since the issue of state revenue is also involved here, Mirza Azizul added.
The trustees of the Sukuk are the Investment Corporation of Bangladesh (ICB) and the issue managers are City bank Capital Resources and Agrani Equity and Investment, respectively.
When asked about Sukuk bonds of Beximco, Shibly Amran, chief operating officer of City Bank Capital Resources told Dhaka Tribune that after beginning its trading, the green Sukuk will add another dimension to investors' investment.
An analysis of data obtained from Citibank Capital, the issue manager of Beximco Bond, shows that: Janata Bank dished out Tk220 crore, City Bank Tk200 crore, Rupali Bank Ltd Tk200 crore, Agrani Bank Limited Tk150 crore, Southeast Bank Tk100 crore, Shahjalal Islami Bank Ltd Tk100 crore, Dhaka Bank Tk100 crore, Dutch Bangla Bank Ltd Tk100 crore, Social Islami Bank Tk80 crore, AB Bank Ltd Tk70 crore, First Security Islami Bank Tk60 crore, Prime Bank Limited Tk50 crore, Union Bank Tk50 crore, Global Islami Bank Tk50 crore, Uttara Bank Limited Tk40 crore, NRB Bank Ltd Tk30 crore, NRB Commercial Bank Ltd Tk25 crore, Community Bank Bangladesh Limited Tk20 crore, Bangladesh Commerce Bank Tk8 crore And Standard Bank Tk1 crore for the Sukuk.
Earlier, Bangladesh Bank allowed all scheduled banks to invest in private Green Sukuk bonds from their special funds meant for investment in the stock market.
Banks bet big on Beximco's 3,000C Sukuk
The face value of the five-year bond of Tk3,000 crore is Tk100. It will start trading at this price
A total of 20 local banks have invested Tk1,654 crore out of Tk3,000 crore in the first privately owned Shariah-based Green Sukuk bond, courtesy of Beximco.
Authorities of both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) said that Beximco's green Sukuk bonds would be traded simultaneously on the country's two bourses from Thursday.
The five-year term asset-backed Green Sukuk is convertible, redeemable and participative, the memorandum says.
According to the DSE, the newly listed bonds will be traded in the main market. The face value of the five-year bond of Tk3,000 crore is Tk100. It will start trading at this price.
However, as per the rules, investors will not get a 30 working days loan facility to buy the shares of this bond as the transaction will start in 'N' category.
The company will allocate 50% of the Sukuk issue through private placement, 25% will be offered to the existing shareholders of the company, and the rest through public offering.
With the Sukuk proceeds, the company plans to funnel Tk2,200 crore into a 200MW solar plant in Gaibandha and a 30MW solar plant in Panchagarh.
Together, they represent the largest solar project in the country. Revenue generation of the two solar plants is guaranteed by a 20-year Power Purchase Agreement (PPA) with the government, according to the memorandum.
The government has recently scrapped several coal-fired power projects and emphasized on climate-friendly green power generation projects instead.
Beximco seeks to cash in on the lucrative incentives offered by the government in green power projects; its power plants will enjoy tax holiday until 2034, duty-free import and certain tariff and VAT concessions.
The remaining Tk800 crore will be used to install high-speed and energy-efficient machinery, expand and modernize the existing green infrastructure of Beximco’s textile division.
AB Mirza Azizul Islam, economist and former financial adviser to the caretaker government, also expressed optimism about how this new bond would fare.
Sukuk bonds are a good initiative of the government for Shariah-abiding investors. In this case, as the banks come forward, the confidence of general investors will undoubtedly increase, he also said.
He also said that now tax rebates should be considered for investing in Sukuk bonds to encourage ordinary investors to invest in them.
So, I think Sukuk should be given tax exemption after considering the two markets since the issue of state revenue is also involved here, Mirza Azizul added.
The trustees of the Sukuk are the Investment Corporation of Bangladesh (ICB) and the issue managers are City bank Capital Resources and Agrani Equity and Investment, respectively.
When asked about Sukuk bonds of Beximco, Shibly Amran, chief operating officer of City Bank Capital Resources told Dhaka Tribune that after beginning its trading, the green Sukuk will add another dimension to investors' investment.
An analysis of data obtained from Citibank Capital, the issue manager of Beximco Bond, shows that: Janata Bank dished out Tk220 crore, City Bank Tk200 crore, Rupali Bank Ltd Tk200 crore, Agrani Bank Limited Tk150 crore, Southeast Bank Tk100 crore, Shahjalal Islami Bank Ltd Tk100 crore, Dhaka Bank Tk100 crore, Dutch Bangla Bank Ltd Tk100 crore, Social Islami Bank Tk80 crore, AB Bank Ltd Tk70 crore, First Security Islami Bank Tk60 crore, Prime Bank Limited Tk50 crore, Union Bank Tk50 crore, Global Islami Bank Tk50 crore, Uttara Bank Limited Tk40 crore, NRB Bank Ltd Tk30 crore, NRB Commercial Bank Ltd Tk25 crore, Community Bank Bangladesh Limited Tk20 crore, Bangladesh Commerce Bank Tk8 crore And Standard Bank Tk1 crore for the Sukuk.
Earlier, Bangladesh Bank allowed all scheduled banks to invest in private Green Sukuk bonds from their special funds meant for investment in the stock market.