Beximco to launch Tk1,500 crore zero coupon bond

Bangladesh Export Import Company Limited (Beximco) has announced the commencement of subscription for the 'Beximco 1st Unsecured Zero Coupon Bond' starting 28 April.

The first tranche of the subscription will be closed on 15 May, reads a press release. 

This follows the Bangladesh Securities and Exchange Commission (BSEC)'s approval on 3 April, authorising BEXIMCO to issue bonds totaling Tk1,500 crore.

IFIC Investment Limited is the arranger and Sandhani Life is the trustee of this bond. 

The Beximco 1st Unsecured Zero Coupon Bond offers an unprecedented discounted rate of 15%, the highest in the market, translating to a monthly return of Tk1,250 per lakh.

This non-convertible, redeemable, unsecured bond aims to raise Tk1,500 crore, of which Tk1000 crore will be used for providing as a loan to Sreepur Township Limited for the development of the Mayanagar project, while the remaining Tk500 crore will be used to repay existing bank loans of Beximco Ltd. 

The investment is particularly attractive due to its high return rate, where an investment of one lakh taka will yield a total return of Tk1,75,000 at the end of five years, including the principal amount. The returns are especially appealing for Non-Resident Bangladeshis (NRBs) and local wage earners, offering one of the best investment avenues available.

The bond subscription has a minimum investment threshold of Tk 50,000, with no upper limit, making it accessible to a broad range of investors. This opportunity is available on a first-come, first-served basis, emphasizing its limited nature and the potential for a quick sell-out due to its attractive features.