Beximco Limited has appointed investment bank City Bank Capital Resources Ltd as the adviser, arranger, and issue manager for its Tk3,000 crore Islamic bond Sukuk Al Istisna.
The two companies signed a deal in this regard in the capital on Sunday, according to a press statement.
Osman Kaiser Chowdhury, Beximco Group director and chief executive officer of the power and engineering division, and Ershad Hossain, managing director and chief executive officer of City Bank Capital, signed the agreement on behalf of their respective organisations.
Beximco is the originator of the issue.
The secured convertible asset-backed Sukuk will be issued – subject to the approval of Bangladesh Securities and Exchange Commission – for constructing solar projects of Teesta Solar and Korotoa Solar, two subsidiaries of Beximco Power Company, and financing and refinancing of machinery and equipment required for the expansion of Beximco's textile division.
The face value of the Shariah-compliant bond has been set at Tk100. The company plans to list the Sukuk on the stock market.
Any investor can invest at least Tk5,000 or its multiples, and the tenure of the Sukuk will be five years. Investors would get at least 9% annual profits and can exercise their option to convert the investment to Beximco Ltd shares.
Other high officials of Beximco Group and its subsidiary companies and City Bank Capital were present at the deal signing ceremony.
City Bank Capital, the investment banking subsidiary of City Bank, is in a leading position to serve local banks and corporates in issuing bonds.