Baraka Power to raise Tk 180cr via zero-coupon bonds

Baraka Power Limited, a private power generation company, will raise Tk 180 crore by issuing zero-coupon bonds to repay the existing debts.

The board decided to issue the bonds at a face value subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC), said the company in a filing with the Dhaka Stock Exchange (DSE) on Monday.

The proceeds of the issue will be utilised to repay the existing debts of the company, which will help reduce the overall finance costs, its company secretary Md Saiful Islam Chowdhury told The Business Post.

A zero-coupon bond is a bond in which the face value is repaid at the time of maturity. It does not make periodic interest payments or has so-called coupons, hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par value. Listed in 2011, Baraka Power posted earnings per share (EPS) of Tk 0.84 during the July-September quarter this year as compared to Tk 0.82 during the same period last year.

Baraka Power’s consolidated EPS stood at Tk 2.96, an increase of almost 23 per cent from Tk 2.41 during FY21. On Monday, its share price declined 1.15 per cent to Tk 25.70 on the Dhaka Stock Exchange.