Beximco allowed to issue Tk2,625cr bond

Business Report :
The Bangladesh Securities and Exchange Commission (BSEC) has allowed Beximco Limited to issue a zero-coupon bond worth Tk2,625 crore for repaying high worth debt and investing in Sreepur Township Limited – which already raised Tk1,000 crore through IFIC Amar Bond.
The commission gave the approval to issue the bond for five-year at a meeting held on Sunday.
Beximco informed that the remaining funds from the bond will be used to pay back its existing loans. However, it did not specify allocations for investment in Sreepur Township and loan repayments.
The nature of the bond is unsecured, redeemable, non-convertible, which will be issued to investors with a 15% discount.
IFIC Investment Limited will act as arranger of the bond, while Shandhani Life Insurance will act as trustee.
In July 2023, the BSEC approved Sreepur Township to raise Tk1,000 crore through a bond, with IFIC Bank serving as its guarantor.
Through promotional activities under the name “IFIC Amar Bond,” Sreepur Township successfully sold the bond to 7,173 investors within a month.
According to the terms outlined in the IFIC Amar Bond, Sreepur Township successfully raised Tk1,000 crore, and upon maturity, it plans to repay Tk1,600 crore to the investors.
Currently, the IFIC-guaranteed bond is being traded on the alternative trading board at the DSE.
Earlier, in 2021, Beximco floated a Tk3,000 crore Sukuk to finance its two solar power plants and its textile division’s expansion.
The investors, mainly banks and some other institutions, have the right to convert 20% of their Sukuk units a year into Beximco shares at 25% discounts from the 20-day average closing price of the shares prior to the record date. Unexecuted conversion rights can also be exercised in later years.
Beximco Limited also decided to enter into a joint venture development agreement with Sreepur Township for the development of the “Mayanagar” project.
Currently, Beximco Ltd owns 75% of the project land, while Sreepur Township owns the remaining 25%. The profit generated from the project will be distributed proportionally between the two entities, as stated by Beximco in its official statement.
Mayanagar, as described in the statement, is a mixed-use, multipurpose affordable real estate project planned for development on a 100-acre plot along the Nabinagar-Chandra Highway in Gazipur.
The project is set to cover a total space of 76 lakh square feet in Gazipur, with 53 lakh square feet allocated for commercial purposes and 23 lakh square feet for residential use. The anticipated project cost is Tk6,095 crore, with an expected revenue of Tk6,585 crore.
The company further said, the development will be a fully secured, gated, and self-contained township comprising 18,000 apartments. Facilities within the township will include healthcare, education, entertainment, sports, and recreation, as well as all necessary civic and lifestyle amenities.
The commercial space will have serviced apartments, hotels, offices, a convention centre, and a shopping mall. The entire project will be developed as a green and eco-friendly township.
Sreepur Township was incorporated in March 2023. Its paid-up capital is Tk335 crore.