The public subscription for bonds of Ashuganj Power Station Company Ltd will open today (Monday), aiming to raise Tk 1.0 billion from the capital market.
The name of the bond is "APSCL Non-Convertible and Fully Redeemable Coupon Bearing Bond" and the company will raise capital by issuing bonds through initial public offering (IPO).
The subscription for bond of the state-run company by the eligible investors through electronic subscription system under fixed price method of the stock exchanges will be continued until 5:30pm on October 06 this year.
On July 2 last, the Bangladesh Securities and Exchange Commission (BSEC) approved the company's proposal for raising a capital worth Tk 1.0 billion through issuing bond. The will issue total 200,000 bonds of Tk 5000 each.
The characteristics of the bond will be non-convertible, fully redeemable and coupon bearing with a face value of Tk 5000 per unit.
An investor needs Tk 5000 to apply for each unit of the bond.
For non-resident Bangladeshi (NRB) and foreign applicants, the required amount (per unit) for subscription is US$ 59.71 or GBP 49.06 or EUR 54.14, according to the Dhaka Stock Exchange (DSE).
The tenure of the bond will be seven years. The annual interests from the bonds will be minimum 8.5 per cent and maximum 10.5 per cent, payable every six months.
The company will raise the capital to bear the costs of land development & civil works, primary fuel, vehicles purchase, engineering and consultancy service, working capital for construction, commissioning and operation of the upcoming 400 MW (East) CCPP Power Plant project.
As per the financial statement for the year ended on June 30, 2018 the company's net asset value (NAV) is Tk 243.29 per share (face value Tk 100) and the basic earnings per share (EPS) of Tk 49.82 (face value is Tk 100).
The company's paid-up capital is Tk 6.61 billion and authrosed capital is Tk 30 billion.
ICB Capital Management and BRAC EPL Investments are working as issue managers of the bond. The ICB Capital Management is also the trustee of the bond.
The Ashuganj Power Station is located near to the Titas Gas field and at the bank of river Meghna. As a part of the Power Sector Development and Reform Program of the government, Ashuganj Power was incorporated under the Companies Act 1994 on 28 June 2000.
The Ashuganj Power Station Company is the largest power hub in Bangladesh. The present total power (electricity) generation capacity of its 08 units is 1690 MW, according to its website.
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