Beximco Sukuk investors face a reduced return of 9% in December, below current treasury bond yields and inflation, as Beximco Ltd.’s financial performance declines. Once highly profitable, the company reported significant losses in FY24, sparking questions about the company’s portrayal to investors during the launch of the “Beximco Green Sukuk al Istisna’a” in 2021.
Beximco’s dividends, which influence the sukuk’s coupon rate, have ceased, dropping returns from a high of 12% to the 9% base. Banks and institutional investors, pressured to invest by prominent figures, face challenges with conversion options due to a regulatory floor price, trapping investor funds at artificially high values. Calls are growing for the Bangladesh Securities and Exchange Commission (BSEC) to lift the floor price. As financial pressures mount, stakeholders are left questioning accountability amid deteriorating market liquidity.
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