IDLC to issue Tk500cr bond

The board of directors of IDLC Finance limited decided to raise Tk500 crore through the issuance of bond to strengthen its capital base and expand business operations, subject to regulatory approval.

The non-bank financial institution’s board decided to issue the Unsecured Non-Convertible Zero Coupon Bond for a period of 2 years through private placements, according to a filing with the Dhaka Stock exchange (DSE) Tuesday.

The bond issuance will require the approval from the authorities concerned, including the Bangladesh Securities and Exchange Commission (BSEC), and the Bangladesh Bank (BB).

Listed on the Dhaka Stock Exchange in 1992, IDLC’s shares were traded at Tk49.9 per share on the DSE Tuesday.

Its shares traded between TK45 and Tk74.8 in the last one year. IDLC’s earnings plummeted by 23 per cent in April-June period of 2022, compared to that in the same quarter of the last year. Its consolidated earnings per share (EPS) stood at Tk1.05 the Q2 of 2022 compared to an EPS of Tk1.36 in the same period of the last year.

The bank recommended a 20 per cent dividend for the year ended December 2021 of which 15 per cent was cash and the remaining 5 per cent was stock dividend.  The company’s paid-up capital is Tk415 crore and its authorised capital is Tk1,000 crore while the total number of securities stands at 41.56 crore, according to the data available on DSE.

The company’s sponsor-directors own 56.66 per cent stake, while institutional investors own 26.62 per cent, foreign investors 2.40 per cent and the general public own 14.32 per cent shares in the company as of August  2022.