BSEC offers letter of intent to BEXIMCO's Tk 3000-cr Islamic bonds

25 Jun '21

2 min read

Pic: Beximco Ltd

The Bangladesh Securities and Exchange Commission (BSEC) recently provided the Bangladesh Export Import Company Limited a letter of intent regarding issuance of Islami Shariah compliant Sukuk (Islamic bonds) worth Tk 3,000 crore. BSEC, in a meeting presided over by its chairman Shibli Rubayat-Ul-Islam, made the decision, a BSEC press release said.

BSEC has approved a Sukuk in the country for the first time. BEXIMCO flagship platform now has operations and investments across a wide range of industries including textiles.

The face value of each unit of Sukuk will be Tk 100 and the minimum subscription Tk 5,000. The minimum periodic profit distribution rate is 9 per cent.

BSEC will finally approve issuance of the Sukuk after BEXIMCO fulfils all regulatory requirements.

BEXIMCO must submit trustee registration certificate, BSEC-approved trust deed as well as subscription agreement to the BSEC within five working days of receiving the letter of intent, the regulatory body was cited as saying by Bangladesh media reports.

Half of the Tk 3,000-crore fund will be raised through private placement and Sukuk worth Tk 750 crore will be raised from the existing BEXIMCO shareholders.

The remaining Tk 750 crore will be raised through an initial public offering in compliance with the BSEC public offer rules.

The secured convertible asset-backed Sukuk will be issued for the purpose of construction of solar projects of Teesta Solar Limited and Korotoa Solar Limited, two subsidiaries of Beximco Power Company Limited, and for financing and refinancing of machinery and equipment required for expansion of BEXIMCO’s textile division.

Investment Corporation of Bangladesh is the trustee, and City Bank Capital Resources Limited and Agrani Equity and Investment Limited are issue manager of the Sukuk.

Fibre2Fashion News Desk (DS)

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