Home ›› 24 May 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has approved a non-convertible, redeemable, unsecured zero-coupon bond worth Tk 200 crore in favour of Envoy Textile Limited.
The approval came at the 824th commission meeting held on Monday, according to a statement. The company will use the proceeds to repay debt and manage working capital.
The zero coupon bonds are being issued as part of the company’s purchase power plant equipment and re-payment on bank loans.
Denomination size of the bond is Tk 10 each and one lot is worth Tk 20 Lac. The bond tenure was not mention in the statement.
The bond will be bank guarantee backed, redeemable, non-convertible in nature with discount rate at a range of 6.5 per cent to 8 per cent.
NDB Capital Limited is the lead arranger and UCB Investment Limited will act as the trustee for the bond.
It will be Trading in Alternative Reading Board, said the BSEC Notice.
June Closing Envoy Textile witnessed a steep fall in its profit in the fiscal 2020-21 as it declined from Tk 27.4 crore to Tk 9.47 crore.
It declared a 10 per cent cash dividend, including 5 per cent interim cash dividend, for its shareholders for the last year.
Incorporated in 1995, the company manufactures 100 per cent export-oriented denim fabric. It is the first denim project in Bangladesh with rope-dyed technology and one of the country’s leading companies in this sector.
Envoy Textile got listed on the exchanges in 2012. Its share price declined 1.87 per cent to Tk 43.60 at the Dhaka bourse on Monday.
Same the Commission Meeting has approved unsecured, Floating Rate, Convertible Bond worth Tk 300 crore in favour of Alif industries Limited with condition.
