National Polymer to issue Tk300cr zero-coupon bond

National Polymer Industries Ltd has decided to collect Tk300 crore through issuing zero-coupon bonds.

The plan is subject to regulatory approval and the money would be used for the company's business expansion, alongside financing its operations.

Unlike the coupon bearing bonds from which investors get interest on a periodical basis over the tenure of the bonds, zero-coupon bonds are sold at a lower price than their face value where the discount is the present value of all the future interest.

Income from zero-coupon bonds is tax-waived in Bangladesh unless the investor is a bank or a financial institution or an insurer.

National Polymer Industries is a leading PVC product manufacturer and marketer in the country. Its products include pipes and fittings, plastic doors, water tanks, plastic furniture and various household products.

Beginning its journey in the late 1980s, the Dhaka-based company went public in 1993.

For the 2020-21 fiscal year, the company announced a 10% cash dividend for its shareholders as its annual earnings per share (EPS) grew to Tk2.82 from Tk2.5 a year ago.

According to local rating agency National Credit Ratings Limited, National Polymer's long term credit rating is "A+" and the short term credit rating is "ST-2".

In the July-September period this year, the company posted Tk0.56 in quarterly EPS, which was Tk0.31 in the same quarter a year ago.