Home ›› 14 Aug 2021 ›› Stock
The subscription process of Shariah compliant Sukuk issued by Bangladesh Export Import Company Limited (BEXIMCO) is all set to commence on August 16.
The eligible investors will subscribe for the Sukuk bond until August 23.
The Sukuk units with a face value of Tk 100 each require to be subscribed in a lot of 50 units or multiples that would amount to at least Tk 5,000. However, there is no limit in the subscription process.
Earlier on July 25, the existing shareholders of Beximco Limited started to subscribe the Green Sukuk bond. The process will continue till August 26.
The Bangladesh Securities and Exchange Commission (BSEC) approved the issuance of a Tk 3,000 crore green Sukuk bond in favour of BEXIMCO Limited on June 23, to finance construction goals and equipment procurement.
It is the largest Sukuk issuance from the Bangladeshi private sector.
Sukuk is an Islamic financial certificate, similar to a treasury bond, which complies with the Shariah.
The tenure of the bond is five years. A 9 per cent base rate of Sukuk enabled the investors to gain minimum 9 per cent secured annual return.
As per the commission’s statement, half of the Tk 3,000-crore fund would be raised through private placement and Sukuk worth Tk 750 crore would be raised from the existing BEXIMCO shareholders.
The remaining Tk 750 crore would be raised through an initial public offering in compliance with the commission’s public offer rules.
Sukuk holders will have the option to convert up to 20 per cent of the Sukuk to ordinary shares of Beximco Ltd annually at 25 per cent discount to the conversion price. The conversion price will be the weighted average price of 20 trading days prior to the record date.
The Sukuk will be issued for the purpose of construction of the solar projects of Teesta Solar and Korotoa Solar, the two subsidiaries of Beximco Power Company, and financing and refinancing the machinery and equipment required for expansion of Beximco’s textile division.
The Investment Corporation of Bangladesh (ICB) will act as the trustee. The City bank Capital Resources Limited and Agrani Equity & Investment Limited will act as the issue managers of the bond. Talking to media over the Beximco’s green Sukuk, chairman of Bangladesh Securities and Exchange Commission Prof Shibli Rubayat Ul Islam said that the scope for making investment is less in Bangladesh for those who want to make Islamic Shariah based investment.
