Envoy Textiles Ltd wants to change its decision of issuing preference shares even though it would go against the approval from the Bangladesh Securities and Exchange Commission (BSEC).
"We have decided not to issue preference shares even though the BSEC has approved this," a company official told The Business Standard.
"We wanted to issue preference shares at ten percent interest to other investors for repayment of high-interest debt. Meanwhile, the Bangladesh Bank has circulated a notice saying that banks' interest rate will be nine percent. So we want to change the decision," the official added.
The BSEC on Tuesday approved fully redeemable non-convertible cumulative preference shares of Tk87 crore in favour of Envoy Textiles Ltd, reads a press release.
The tenure of the preference shares will be five years, and the per-unit price has been set at Tk1 crore for institutional investors and Tk50 lakh for eligible investors, according to the securities regulator.
Envoy Textiles Ltd aims to expand its business and repayment of the existing high-cost debt by issuing the shares to other organisations.
The shares will be sold to banks, corporate bodies, financial institutions and other institutional investors through private placements. NDB Capital Ltd will act as the issue manager of the preference shares.