The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved a non-convertible zero-coupon bond of Tk500 crore in favour of IDLC Finance Ltd.
The tenure of the bond will be four years and per unit price was set at Tk50 lakh.
IDLC Finance aims to expand its business and strengthen its capital base by issuing the bond to other organisations.
The bond units will be sold to banks, insurance firms, corporate bodies, financial institutions, and other institutional investors through private placements.
EC Securities Ltd will act as the trustee and IDLC Finance will be the arranger of the bond.
A zero-coupon bond is simply a discount bond which is originally sold at a discount from its face value instead of periodic dividend payments or interests. Face value is the amount paid to the bondholders at maturity.
IDLC Finance reported a consolidated net profit of Tk161 crore during the first three quarters of last year, which was 28% higher compared to the same period of the previous year.
In the first three quarters of 2020, the company's consolidated earnings per share (EPS) was Tk4.27 while its consolidated net asset value (NAV) per share was Tk37.95.
IDLC Finance paid a 35% cash dividend to its shareholders for the 2019 financial year.
The company was listed on the DSE in 1992. Its paid-up capital is Tk377 crore.
Of the total shares of IDLC Finance, sponsors and directors jointly own 56.66%, institutional investors 22.60%, foreign investors 9.64%, and general investors 11.10%.
The closing price of the company's each share was Tk82.20 on Wednesday at the DSE.