Beximco Group, Business in Bangladesh, Top News

BEXIMCO Group, one of the leading private conglomerates in Bangladesh, was recently approved to issue zero coupon bonds worth Tk 1,500 crore. Bangladesh Securities and Exchange Commission (BSEC), the commission that regulates the country’s capital market and protects the interest of investors announced and gave the final approval of the news.

According to a press release, the amount incurred through the bond will be used to develop the township project named Mayanagar, in a joint venture with Sreepur Township Limited. BEXIMCO Group owns 75% of the total land and Sreepur Township owns the remaining 25%. The rest will be used to settle the company's existing loans.

A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount. It renders a profit at maturity when the bond is redeemed for its full face value. Each unit of the authorized zero coupon bond is worth Tk 50,000 and will be available at a discount of 15 percent. The total face value upon reaching maturity after 5 years will be Tk 2,625 crore. BEXIMCO Group’s first Unsecured Zero-Coupon Bond are redeemable, non-convertible, and non-tradable zero-coupons and can be purchased by institutions and individuals. IFIC Investment Limited is appointed as the arranger of the bond and Shandhani Life Insurance is appointed as the trustee for the bond issuance.

BEXIMCO Group is one of the oldest reputed private companies in Bangladesh, founded in the early 1970s by Bangladesh's top business personalities Ahmed Sohail F Rahman and Salman F Rahman. The company has several business concerns with more than 70,000 employees. Vice Chairman of the company Salman Rahman also serves as Prime Minister Sheikh Hasina's Private Industry and Investment Adviser and a constituent member of the National Parliament.

Under Ahmed Sohail F Rahman and Salman F Rahman's dynamic leadership, BEXIMCO Group has become known for incorporating renewable energy and sustainable raw materials into its processes and achieved a global leadership position in sustainability. The top conglomerate's pharmaceutical wing was the first to start developing a generic version of Remdesivir, a drug used as a treatment for COVID-19. Its textile and apparel unit is one of the largest in South Asia.

BEXIMCO Group plans to invest a portion of the raised fund for a multipurpose affordable real estate development project in Sreepur near Nabinagar-Chandra Highway. The total area of the project is about 100 acres. A globally-renowned architectural and engineering consultancy firm has been appointed for the design, development, and supervision of the project on a turnkey basis. An international engineering, procurement, and construction contractor will be appointed for the project's implementation.

The housing project will be a fully secured, gated, and self-contained township comprising 18,000 apartments and will offer a comprehensive range of facilities including healthcare, education, entertainment, sports, and recreation, along with all necessary civic and lifestyle amenities. The commercial space, spanning 5 million square feet, will include serviced apartments, a hotel, offices, a convention center, and a shopping mall. The entire project is set to be developed as a green and eco-friendly township.