Home ›› 12 May 2023 ›› Stock
Runner Automobiles PLC decided to expand its customer base and develop a rooftop solar plant for its manufacturing facility.
To this end, the vehicles maker will raise Tk 265 crore through the issuance of a sustainability bond, as confirmed in a filing on the Dhaka Stock Exchange (DSE) on Thursday.
The Runner Auto Internationally Certified Sustainability Bond will be a non-convertible, unsecured, guaranteed, and redeemable sustainability one.
To complete the subscription of the bond, private placements will be held to attract various potential investors, including financial institutions, corporate houses, banks, insurance companies, non-resident Bangladeshis, and high-net-worth individuals.
The bond issue will have a maturity of up to seven years and a yield ranging from 8.5 per cent to 9 per cent per annum, the DSE disclosure read.
The bond fund will be utilised to expand Runner’s customer base through a credit support mechanism, build a 4MW rooftop solar plant for the three-wheeler manufacturing facility, and purchase more three-wheelers.
Green Delta Capital Limited will serve as the lead arranger and advisor for the bond issuance, while DBH Finance PLC will act as the trustee.
Runner Automobiles reported a loss of Tk 16 crore in the January-March quarter of the fiscal year 2022-23.
Furthermore, the company’s loss in the July-September quarter of the current fiscal was Tk 8.93, against a profit of Tk 8.85 crore during the same quarter last fiscal.
The earnings per share (EPS) for the first nine months of the current financial year were at Tk 4.31, negative from the previous year’s same period of Tk 2.27.
However, despite the financial losses, the company remains committed to its plan to expand its customer base and establish a rooftop solar plant for its manufacturing facility.
On Thursday, the shares of Runner Automobiles were unable to surpass the floor price of Tk 48.40.