INCTL mandates IDLC Finance for arranging BDT 700m ZCB

Impress-Newtex Composite Textiles Ltd (INCTL) has recently signed a 'Term Sheet' with IDLC Finance Limited (IDLC), for the issuance of Zero Coupon Bond worth BDT 700.00 million where IDLC shall act as the lead arranger and Impress Capital Limited (ICL) as adviser, said a statement.
Selim RF Hussain, CEO & Managing Director of IDLC Finance Limited, Reaz Ahmed Khan, Chairman of Impress-Newtex Composite Textiles Ltd and Meer Sajed-Ul-Basher, FCA, Managing Director of Impress Capital Limited signed the Term Sheet on behalf of their respective organisations, while senior officials from the three organisations, were also present.
The Zero-Coupon Bond (ZCB) will have a discount rate of 11 per cent and final maturity of four years. The ZCB shall be floated among corporate houses and high-net worth individuals, mostly for subscription as they will get 100 per cent tax exemption on its return.
The proceeds of the issue will be used for the capital expenditure required for their existing expansion plan including implementation of its back-ward linkage units. The issuance of the ZCB will be available for subscription after getting Bangladesh Securities and Exchange Commission (BSEC)'s approval.