Bangladesh, Beximco Group, Business in Bangladesh, Economy of Bangladesh

The Bangladesh Securities and Exchange Commission approved the country's top conglomerate BEXIMCO Group's proposal to issue a zero-coupon bond for raising 1,500 crore taka. The top conglomerate plans to raise this amount from both institutional entities and high-net-worth individuals.

The Bangladesh Securities and Exchange Commission approved the country's top conglomerate BEXIMCO Group's proposal to issue a zero-coupon bond for raising 1,500 crore taka. The top conglomerate plans to raise this amount from both institutional entities and high-net-worth individuals.

BEXIMCO Group is one of the largest private sector players in Bangladesh with more than 70,000 people working for the company. It was founded in the early 1970s by Bangladesh's top business personalities - Ahmed Sohail F Rahman and Salman F Rahman. Salman Rahman apart from leading the company also serves as Prime Minister Sheikh Hasina's Private Industry and Investment Adviser.

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 units are one of the largest in South Asia.

The face value of each unit of the zero-coupon bond, to be issued by BEXIMCO Group is 50,000 taka with a discount rate of 15 percent. These are redeemable, non-convertible, and non-tradable zero-coupon and can be purchased by institutions and individuals. BEXIMCO Group's board approved the issuance of this bond during a meeting on 10 March to repay existing loans and invest in a real estate development project in a joint venture with Sreepur Township.

A zero-coupon bond is a debt security that is traded at a deep discount and renders a profit at maturity. BEXIMCO Group's zero-coupon bond will reach maturity after 5 years. 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 plans to invest a portion of the raised fund for a multipurpose affordable real estate development project located on the Nabinagar-Chandra Highway in Sreepur. The total area of the project is about 100 acres. BEXIMCO Group entered into a joint venture agreement with Sreepur Township to carry out the project named Mayanagar. Sreepur Township Limited raised 1,000 crore taka through IFIC Amar Bond for the project in 2023.

BEXIMCO Group owns 75% of the total land and Sreepur Township owns the remaining 25%. A globally renowned architectural and engineering firm already started designing the project. At a later stage, another globally renowned engineering and construction firm would be appointed for development and implementation.

This is the second time that the country's top conglomerate is raising bonds. In 2021, BEXIMCO Group floated a 3,000-crore taka Sukuk bond. That fund was raised for financing its textile division expansion and development of two solar power plants.