The Bangladesh Securities and Exchange Commission (BSEC) has approved a proposal from City Sugar Industries Limited to issue a corporate bond worth BDT 1,300 crore.
The approval was granted during the 1006th emergency commission meeting held on Monday, chaired by BSEC Chairman Khondoker Rashed Maqsood. The decision was later communicated through an official press release from the capital market regulator.
Key Features of the Bond
The approved financial instrument is structured to provide security to investors while helping the company restructure its debt. The core characteristics include:
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Type: 100% Secured (Mortgage-backed), Non-convertible, and Fully Redeemable.
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Structure: Zero-Coupon Bond.
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Tenure: 3 Years.
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Discount Rate: 13.50%.
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Face Value: BDT 13 lakh per unit.
According to BSEC Director and Spokesperson Md. Abul Kalam, the bond will be issued through private placement. Potential investors include corporate bodies, High Net-Worth Individuals (HNIs), local banks, financial institutions, and insurance companies.
Purpose of the Fund
City Sugar Industries Limited intends to use the capital raised from this issuance to repay existing loans held with various banks and financial institutions. This move is expected to streamline the company’s balance sheet and manage its financing costs more effectively.
Market Listing and Intermediaries
As a condition of the approval, the bond must be listed on the Alternative Trading Board (ATB) of the stock exchanges to facilitate trading.
The professional entities managing the issue are:
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Trustee: BRAC EPL Investment Limited
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Arranger: BRAC Bank PLC
This massive issuance marks a significant move in the corporate bond sector, reflecting the regulator’s ongoing efforts to deepen the country’s debt market and provide diversified investment avenues for institutional players.
