Akij Food gets approval to raise Tk500cr through bonds

Akij Food and Beverage Limited has received regulatory approval to raise Tk500 crore through issuing bonds, marking a significant step in strengthening its financing base.

The approval was granted by the Bangladesh Securities and Exchange Commission at a commission meeting held on Wednesday , according to an official press release.

The company plans to float an unsecured, non-convertible, fully redeemable zero-coupon bond with a tenure ranging from six months to a maximum of five years. The structure allows the company to raise funds without periodic interest payments, with returns to investors realised at maturity.

According to the disclosure, the bond will be issued through private placement to banks, non-bank financial institutions, insurance companies, institutional investors, and high-net-worth individuals. Each unit of the bond will carry a face value of Tk10 lakh.

Sena Insurance PLC will act as the trustee for the bond, while North Star Investments (BD) Limited has been appointed as the fund arranger.