Home ›› 13 May 2022 ›› Stock
Green Delta Insurance Company Limited, one of the leading private non-life insurance companies in Bangladesh, said on Thursday that it will launch exchange-traded fund (ETF).
Size of the open-ended ETF will be Tk 50 crore, the company said in a filing with the Dhaka Stock Exchange (DSE).
It will be the first ETF to be sponsored by a company in Bangladesh subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC).
The ETF sponsor decision by any company comes five years after the rules were farmed by the securities regulator in 2016.
Investors can gain exposure to a diversified portfolio as the units can be bought or sold like any other stock on the exchange through brokers. The fund is expected to list on the DSE after the regulatory approval.
ETFs are innovative instruments that provide exposure to an index or a basket of securities that trade on the exchange like a single stock and have a number of advantages over traditional open-ended index funds as they can be bought and sold on the exchange during trading hours at prices that are close to the NAV of the scheme.
The fund’s name will be ‘DS 30 Index Tracking Exchange Traded Fund’ (DS 30 ETF).
Of the fund titled ‘Green Delta Dragon Enhanced Blue Chip Growth Fund’, it will provide Tk 2.50 crore. The remaining portion of the fund will be raised from other sponsors and the market.
The general insurance company also published its financial statements for the January-March ’22 period on the day.
As per the un-audited report, Green Delta Insurance’s consolidated earnings per (EPS) were Tk 1.78 for Jan-Mar’22 as against Tk 1.76 for the same period of the last year. Its consolidated NAV per share was Tk 69.67 as of March 31, 2022, and Tk 69.32 as of December 31, 2021.
On the day, its share price declined 1.16 per cent to Tk 77 on the Dhaka Stock Exchange (DSE). Its market capitalisation is Tk 780 crore as of the day and its paid-up capital is Tk100 crore.
Green Delta is also the first insurance company in Bangladesh to have an equity partnership with International Finance Corporation (IFC) of World Bank Group. Green Delta Capital, Green
Delta Securities, Professional Advancement Bangladesh Limited, and GD Assist Limited are four of the direct subsidiaries of the general insurance company.
