BEXIMCO to launch groundbreaking Tk 1,500cr zero coupon bond

Business Desk :
Bangladesh Export Import Company Limited (BEXIMCO) has announced the commencement of subscription for the ‘Beximco 1st Unsecured Zero Coupon Bond’ starting April 28, 2024 and the first tranche of the subscription will be closed on May 15, 2024.

This follows the Bangladesh Securities and Exchange Commission (BSEC)’s approval on April 3, 2024, authorizing BEXIMCO to issue bonds totaling Tk 1,500 crore, according to a press release.

IFIC Investment Limited is the arranger and Sandhani Life is the trustee of this bond. The Beximco 1st Unsecured Zero Coupon Bond offers an unprecedented discounted rate of 15%, the highest in the market, translating to a monthly return of Tk 1,250 per lakh.

This non-convertible, redeemable, unsecured bond aims to raise Tk 1,500 crore, of which Tk 1,000 crore will be used for providing as a loan to Sreepur Township Limited for the development of the Mayanagar project, while the remaining Tk 500 crore will be used to repay existing bank loans of Beximco Ltd.

The investment is particularly attractive due to its high return rate, where an investment of one lakh taka will yield a total return of Tk 1,75,000 at the end of five years, including the principal amount.