Beximco Limited, the first private sector company in Bangladesh, has been granted permission by the Bangladesh Securities and Exchange Commission (BSEC) to convert its Tk3,000 crore Sukuk bond into shares without needing prior approval. The Sukuk bond was issued in 2021 to finance the company’s solar power plants and textile division’s green expansion.
Investors, primarily banks and institutions, have the option to convert 20% of their Sukuk units into Beximco shares annually, enjoying a 25% discount from the 20-day average closing share price before the record date. The unexecuted conversion rights can also be exercised in later years.
Beximco has already seen around Tk170 crore worth of Beximco Green Sukuk converted into common shares in the first year. This amounted to over 1.96 crore new shares being credited to 325 Sukuk investors’ accounts. However, around 70% of Sukuk investors chose to retain their income investment, as they were receiving robust double-digit annual returns from the Sukuk. The conversion resulted in a 2.24% increase in Beximco’s total shares.
To streamline the process and eliminate complications, BSEC exempted Beximco from obtaining separate approval for increasing the paid-up capital through share issuance. This move aims to facilitate smoother and more efficient conversion of Sukuk units into shares.
The trustee of the Beximco Green Sukuk Al Istisna’a has also approved a 5.55% profit payment for the first half of the Sukuk’s second year. The Sukuk has been trading on the stock exchanges since January 2022, with the current trading value at Tk85 on the Dhaka Stock Exchange (DSE).
Source for more details:
