IPDC Finance – one of the leading non-bank financial institutions in the country – wants to issue a Tk150 crore subordinate bond to meet its ongoing financial and capital adequacy requirements.
It will be a non-convertible, unsecured, floating rate, coupon-bearing subordinated bond and the proceeds will be regarded as Tier 2 capital of the issuer.
The tenure of the bond will be six years.
The lender will issue the bond on a private placement subject to the regulatory and shareholders' approval.
The company has not yet fixed the date for an extraordinary general meeting (EGM) and the record date for shareholders' approval.
The company recommended a 12% cash dividend for its shareholders for the year that ended on 31 December 2020.
According to the company's first quarter financial statements, its net profit stood at Tk20.49 crore, which was Tk15 crore for the same period of the previous year.
The paid-up capital of the company, which got listed on the Dhaka Stock Exchange (DSE) in 2006, is Tk371.09 crore.
Sponsors and directors hold 48.04%, the government 21.88%, institutional investors 17.29%, foreign investors 2.27%, and general investors 10.52% of the company's shares.
At the end of Tuesday's trading session, its share's closing price was Tk26.10 each at the DSE.