Beximco Green-Sukuk to debut on Thursday

Beximco Green-Sukuk Al Istisna – the first-ever asset-backed security by a private sector entity in Bangladesh – will make its trading debut on the Dhaka Stock Exchange  (DSE) and Chittagong Stock Exchange (CSE) on 13 January.

On 23 December, the Central Depository Bangladesh Limited (CDBL) credited the company's primary shares to investors' beneficiary owners (BO) accounts. 

Prime Minister's Private Industry and Investment Adviser Salman F Rahman will be the chief guest at the opening ceremony.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-Ul-Islam will also be present on the occasion. 

According to the DSE, 20 banks have subscribed to more than 74% of the private placement amount of Tk2,250 crore in the Beximco Green-Sukuk Al Istisna. 

Brokerage firms, insurance companies, asset management companies, and other corporations subscribed to the rest of the amount.

The investments have come during 14-15 December 2021.

On 23 June last year, Beximco secured the BSEC approval to launch its Tk3,000 crore Sukuk bond for a five-year tenure.

But the company's existing shareholders subscribed to only Tk2 crore. Underwriters and the general public subscribed to the rest of the amount. 

Beximco will spend the Sukuk money on eco-friendly infrastructures.

It will expand its textile unit, and implement two solar power projects under its power division.

The Investment Corporation of Bangladesh is the trustee of the Sukuk, while City Bank Capital Resources Ltd and Agrani Equity and Investment Ltd are jointly working as its issue managers.

The base rate of the Sukuk was set at 9%, which means investors will be getting a 9% secured annual return.

Investors can gradually convert their Sukuk to Beximco shares over its five-year tenure, but they can only convert a maximum of 20% of the total in a year.