Paramount Textile to issue Tk250cr bond to pay off loans

Paramount Textile, a concern of Paramount Group, is going to issue a bond worth Tk250 crore to pay off loans.

According to the company's stock exchange filing on Thursday, the issuance of the bond is subject to approval of the Bangladesh Securities and Exchange Commission (BSEC).

The non-convertible, transferable, fully redeemable, and unsecured zero coupon bond will be issued through private placement.

According to the latest financials of Paramount Textile, its total liabilities stood at Tk1,566.47 crore, which was Tk1,155 crore in June 2022.

In recent years, the company diversified its business in the power sector. Its liabilities increased significantly due to business expansion.

The company has also decided to convert its investment in Intraco Solar Power Limited, a sister concern of Paramount Textile, into preference shares, said the disclosure.

In July this year, the BSEC allowed Paramount Textile to raise Tk150 crore by issuing 15 crore preference shares at Tk10 each through private placement.

Paramount Textile holds 80% of the total paid-up capital of Intraco Solar Power, which it acquired last year.

According to its annual report, Paramount Textile has invested Tk145 crore in the company to acquire and run the plant.

In the disclosure, it said Tk91 crore will be converted into convertible non-redeemable preference shares at 9% dividend.

The price of each share will be Tk10, and the shares will be converted on a yearly basis within five years from the date of allotment.

Another Tk63.78 crore investment will be converted to non-convertible redeemable preference shares at 9% dividend on a yearly basis within five years.

Paramount Textile was incorporated in 2006, and got listed on the stock exchanges in 2013.

In the 2021-22 fiscal year, its profit increased by 15% and it recommended a 10% cash dividend for the shareholders.