SS Steel to issue Tk 500cr bonds

Business Report :
SS Steel has decided to issue bonds worth Tk 500 crore in order to repay bank loans, and expand and modernise its existing facilities.
The steel producer’s board of directors took the decision to issue the unsecured, convertible and redeemable coupon-bearing bonds in a meeting on April 9 and informed shareholders through a disclosure on the Dhaka Stock Exchange (DSE) yesterday.
Unsecured refers to the fact that if the company goes bankrupt and defaults on its payments to investors, the repayment of the owed principal amount, as well as interest, is not guaranteed to the investors.
Convertible refers to the fact that the bonds can be converted into a predetermined number of common stocks or equity shares whereas redeemable means that it can be paid off by the issuer prior to its maturity date.
The bonds will have a tenure of seven years and will be issued after receiving approval from the Bangladesh Securities and Exchange Commission.
SS Steel’s net revenue rose 94 percent to Tk 1,486 crore in fiscal year 2022-23 while profits dropped 97 percent to Tk 1.76 crore.