The Investment Corporation of Bangladesh (ICB) has asked concerned investors of the debentures issued by three companies of the Beximco Group to claim their principal with interest by 5 June, 2021.
The three issuing companies are: Beximco Textile Ltd, Beximco Denim Ltd, and Beximco Synthetics Ltd. ICB is the trustee of the debentures issued by these companies.
Of the three debenture issuers, Beximco Denim and Beximco Textile, have merged with Beximco Group's flagship company - Beximco Ltd.
But sponsors want to discontinue the venture of publicly listed Beximco Synthetics as it is not a good business nowadays.
In a newspaper advertisement on Monday, ICB requested debenture holders to make their claims as the issuing companies have initiated settlement of all liabilities to debenture holders.
In order to make the claims, investors have to communicate with the trustee services wing of ICB, of course with supporting documents for their claims.
The debentures, issued in the mid-1990s, have long been virtually dormant, mainly due to a lack of proper communication between investors, issuers, and the trustee.
Beximco Ltd is going to issue the first ever Sukuk or Shariah-compliant asset backed securities worth Tk3,000 crore.
Also, the Bangladesh Securities and Exchange Commission is working to re-energise the market for debt securities.
Thus, Beximco Group has taken the initiative to pay off any remaining liabilities in debentures.
The Beximco Group also has two other debentures - Beximco Fisheries Debenture and Beximco Knitting Debenture - still listed on the debenture board of the Dhaka Stock Exchange.
But none of these see any trading activity of their units at the bourse.
The outstanding amount in the debentures is up to less than Tk2 crore in today's value of Bangladeshi currency.
But with added interest, the payable for the issuers may go higher.