Home ›› 12 Jan 2022 ›› Stock
Beximco Sukuk, an Islamic bond, is set to debut on the bourses on Thursday.
The country’s twin bourses—Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE)—listed such sort of bond for the first time in history.
A Sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Sharia - Islamic religious law.
The bond styled Beximco Green Sukuk Al Istisna will be traded under the trading code “BEXGSUKUK” on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), said Beximco in a filing with the DSE on Tuesday.
After an initial hiccup, the subscription for the Tk 3,000 crore bond floated by Beximco Group was completed on December 15, 2021.
On June 30 last year, the Bangladesh Securities and Exchange Commission (BSEC) approved the issuance of a Tk 3,000 crore green Sukuk bond in favor of Beximco Limited to finance construction works and equipment procurement.
The tenure of the bond is five years, during which investors will gain a minimum of 9 per cent as a secured annual return.
As per the commission’s statement, half of the Tk 3,000-crore was raised through private placement, and Tk 750 crore was raised from the existing Beximco shareholders. The remaining Tk 750 crore was raised through an initial public offering in compliance with the public offer rules.
In September, the Bangladesh Bank allowed banks to invest their entire special funds in the private sector-issued green bond from their special funds formed to invest in the stock market. In February, banks were permitted to set up a Tk 200 crore fund for investment in the stock market.
The Sukuk units, with a face value of Tk 100 each, were offered in a lot of 50 units or multiples that amounted to at least Tk 5,000. However, there is no limit to the subscription process.
According to the company, the funds raised from the Sukuk will be used for the construction of two solar projects – Teesta Solar and Korotoa Solar – two subsidiaries of Beximco Power Company, and for financing and refinancing machinery and equipment required for the expansion of Beximco’s textile division.
The Investment Corporation of Bangladesh (ICB) is the trustee of the bond offering. The City Bank Capital Resources Limited and Agrani Equity & Investment Limited are the issue managers of the bond.
