Initial Public offering (IPO) of Shariah compliant Sukuk issued by Beximco will begin on August 17 and will continue until August 23. Sukuk subscription through private offerings (existing shareholders and institutional investors or high net individuals) will begin on July 25 and end on August 26, BEXIMCO confirmed. This share is going to be the country’s largest Sukuk bond.
The company also fixed from 25 July to 26 August for the subscription by its existing shareholders. The Bangladesh Securities and Exchange Commission (BSEC) gave the final approval to BEXIMCO for issuing Tk 3,000 crore Shariah-compliant Sukuk on 8 July 2021.
The company will separately place Sukuk units worth Tk2,250 crore, of which Tk750 crore will be offered to the company’s existing shareholders, and Tk1,500 crore to other investors. Besides, Tk750 crore of Sukuk would be floated in an IPO. The Sukuk units having a face value of Tk100 each will have to be subscribed in a lot of 50 units or multiples that would amount to at least Tk5,000.
The BEXIMCO at a governing body meeting on Monday chose to set the record date for existing investors to take an interest in the membership of Sukuk through private position. BSEC authorities said the Sukuk would be a green one as the organization would spend the cash on eco-accommodating frameworks. Beximco Limited would grow its projects, including financing and refinancing (non-interest bearing) of the textile machinery for expansion of the textile division of the originator, which will ensure energy efficient production, including wastewater treatment, waste prevention and recycling.
Tenure of the green Sukuk is five years from the issuance date. The face value of each Sukuk is Tk 100 and minimum subscription is Tk 5,000 or 50 green Sukuk. The minimum periodic profit distribution rate is 9 per cent.
Investment Corporation of Bangladesh is the trustee of the Sukuk, while City Bank Capital Resources Ltd and Agrani Equity and Investment Ltd are together filling in as issue administrators.