Navana Pharmaceuticals, a leading drug maker, has announced its plan to issue a Tk150 crore bond with a five-year maturity period to repay its existing bank loans. The bond will be partially convertible, allowing a portion of the debt capital to be later converted into equity, while the remaining amount will be returned to investors after the maturity period. This move is expected to lower interest expenses compared to bank loans and provide better cash flow with semi-annual bond interest payments. The company aims to attract both equity and debt investors by offering a unique investment opportunity with attractive risk-adjusted returns. The interest rate on the bond will be floating, tied to money market benchmark rates. Navana Pharmaceuticals has a bank liability of Tk330 crore and has already repaid Tk21.18 crore of bank loans from the capital raised through its previous initial public offering. The bond issuance is subject to approval from shareholders and regulatory authorities. On the stock exchange, Navana Pharmaceuticals shares experienced a 7.33% surge, reaching Tk117.1.
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