Approved of Tk 3,000 crore Sukuk bond to Beximco

Listed Bangladesh Export-Import Company (Beximco) Limited has been given permission to raise funds worth Tk 3,000 crore by issuing Shariah-based Sukuk bonds.

The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, gave the conditional approval at the 69th commission meeting on Wednesday.

This information has been given in the press release signed by the Executive Director and Spokesperson of BSEC Mohammad Rezaul Karim.

It is learned that the term of Sukuk bond worth Tk 3,000 crore is 5 years. Within five working days of receiving Beximco’s letter of intent, the letter of consent will be issued, subject to the submission of the proposed subscriber registration certificate of Sukuk and the final subscription agreement approved by the Commission. The proposed Green Sukuk will be issued through 22.50 billion private placements (from 7.50 billion existing shareholders and 15.00 billion from non-existing shareholders) and 7.50 billion initial public offerings (IPOs).

By raising funds through this Sukuk issue, Beximco Ltd. will expand the activities of its textile unit and Beximco Ltd. will ensure environmental development and conservation as well as implementation of two government approved subsidiary renewable power generation projects (Teesta Solar Ltd. and Karatoya Solar Ltd.). The face value of this Sukuk is Tk 100 per unit.

The minimum subscription of Sukuk is Rs. 5,000, minimum lot is 50. Sukuk has a minimum periodic distribution of 9 percent. The trustees of this sukuk are the Investment Corporation of Bangladesh and the issue managers are Citibank Capital Resources Limited and Agrani Equity and Investment respectively.

For the first time in Bangladesh, the commission has decided to give consent to Green Sukuk.

Sunbd/NJ