Home ›› 08 Feb 2022 ›› Stock
Beximco Green-Sukuk Al Istisna bond went below the face value a day after it debuted on the bourses about three weeks back.
As of Monday, the bond’s price fell around 22 per cent to Tk 88 on its face value of Tk 100 on the Dhaka Stock Exchange (DSE).
The first-ever largest green bond found hardly any takers due to the higher trading cost, dealers say.
Sukuk is an Islamic financial certificate similar to a treasury bond, which complies with Shariah laws.
During its 18 trading days, the bond price hit the highest at Tk 110 and lowest at Tk 85.
Usually, a brokerage house charges a minimum of Tk 0.20 and a maximum of Tk 0.50 for every share transaction worth Tk 100.
In the case of bonds below Tk 1 lakh, the per-transaction cost is Tk 75, including DSE’s fee of Tk 50, advance tax Tk 2.5, and the broker’s commission Tk 22, according to the DSE.
On 13 January 2022, the bond started trading on the DSE.
Beximco Limited, the flagship company of the Beximco Group, raised Tk 3,000 core through the bond. Half of the figure was raised through private placement and Tk 750 crore through the existing Beximco shareholders.
The remaining Tk 750 crore was raised through an initial public offering in compliance with the commission’s public offer rules.
During its subscription period, the much-hyped bond also faced a tepid response from the institutional investors.
The subscription process started on August 16 with much enthusiasm as it was the maiden green Sukuk bond introduced in the capital market.
According to the company, the fund will be used for the construction of two solar projects – Teesta Solar and Korotoa Solar – two subsidiaries of Beximco Power Company, and financing and refinancing machinery and equipment required for expansion of Beximco’s textile division.
The tenure of the bond is five years, of which investors will gain a minimum of 9 per cent as secured annual returns.
Despite the extension of the subscription period twice, the bond remained undersubscribed. However, the subscription for Beximco Sukuk IPO subscription was completed on December 16, 2021, due to some rules tweaked by the relevant regulators.
On January 23, 2021, the Bangladesh Securities and Exchange Commission (BSEC) approved the bond.
