Home ›› 17 May 2023 ›› Stock
The board of directors of LankaBangla Finance, a non-bank financial institution, decided to issue a zero-coupon bond worth Tk 200 crore, subject to regulatory approval.
This move aims to generate liquidity to meet the company's ongoing financing requirements, the company said in a filing posted on the Dhaka Stock Exchange (DSE) Tuesday.
A zero-coupon bond is a type of debt security that does not pay interest to investors. Instead, it is initially sold at a deep discount and provides a profit upon maturity when it is redeemed for its total face value.
The income generated from zero-coupon bonds is currently fully exempted from tax for all investors, except for banks, financial institutions, and insurance companies.
LankaBangla Finance reported a significant decline in its consolidated profits in the January-March quarter of 2023.
The company's net profit stood at Tk 8 crore in the quarter, reflecting a 65 per cent decrease compared to Tk 23.17 crore in the same quarter last year.
Its consolidated earnings per share (EPS) for the January-March quarter of 2023 were Tk 0.15, down from Tk 0.43 for the same quarter of 2022.
Additionally, the company’s consolidated net operating cash flow per share (NOCFPS) was Tk 0.22 negative for the first quarter this year, which was Tk 3.49 for the first quarter of 2022.
The consolidated net asset value per share (NAVPS) of the company as on March 2023 was Tk 19.41, down from Tk 20.02 till December 2022.
The listed firm’s earnings got slumped sue to several factors, including the interest rate cap imposed by regulators since the second half of 2022, deteriorated asset quality in the Covid-19 time, and lower brokerage commissions resulting from reduced turnover in both bourses.
Meanwhile, the decrease in NOCFPS happened to higher cash outflows due to deposit settlements and other asset settlements, the company in its recent financial report said.
On Tuesday, the company’s shares closed at Tk 26 each on the DSE trading floor.
LankaBangla Finance has three subsidiaries—LankaBangla Securities, LankaBangla Investment, and LankaBangla Asset Management Company Limited.
