Trust Islami Life gets nod to go public

Trust Islami Life Insurance Limited has received approval from the securities regulator Bangladesh Securities and Exchange Commission (BSEC) to raise a fund worth Tk 16 crore through the issuance of initial public offering (IPO).

Meanwhile, BURO Bangladesh, a non-listed non-government organisation, was approved to raise a fund of Tk 150 crore by issuing zero-coupon bonds.

The BSEC gave them the approval during a commission meeting with its Chairman Shibli Rubayat Ul Islam in the chair on Wednesday.

According to the regulatory approval, the insurance company under the fixed price method, would raise the fund by offloading 1.60 core ordinary shares at a face value of Tk 10 each.

The insurer would utilise the fund by investing in government treasury bonds, fixed deposit receipts (FDR), capital market as well as meet the IPO expenses.

As per the actuarial valuation report as of June 30, 2022, the company’s surplus capital was Tk 73.20 Lakh.

BMSL will be acting as the issue manager for the IPO process.

As per the BSEC condition, the company would not be allowed to declare, approve, or disburse any dividends before its listing on the stock market.

With an authorised capital of Tk 100 crore, the insurer has a paid-up capital of Tk 18 crore. It was incorporated in 2014.

On the other hand, the stock market regulator also approved the BURO Bangladesh to raise Tk 150 crore by issuing zero-coupon bonds.

A zero-coupon bond is a debt security that does not pay interest; instead it trades at a discount, rendering a profit at maturity, when the bond is redeemed for its full face value.

As per BSEC approval, the face value of per unit of the bond is Tk 10 lakh.

The bond is unsecured, non-convertible, and fully redeemable, and its tenure is one and half years to five years. Corporate investors and high net-worth individuals are eligible to buy the bonds through private placement.

The NGO would use the proceeds to expand its micro-finance activities.

Sena Kalyan Insurance and Standard Chartered Bank will be working as mandated trustee and arranger respectively. The BSEC also served the NGO a condition to issue the bond which is that it has to be listed on the Alternative Trading Board (ATB) of the Dhaka Stock Exchange.

BURO Bangladesh, a national non-government social development organisation, was established in 1990. It intends to work for the poor and rural people to reduce human poverty and also increase the income.

Over the period, the organisation emerges as a front ranking specialised microfinance institution. It provides high quality flexible financial and social services to one million low-income people, particularly the poor women.