SEC further extends time-limiton listing of MI Cement, MJL
Friday, 22 April 2011
FE Report
The securities regulator has attached conditions with the approval of fifty per cent convertible bond issue of Northern Power Solution Limited to raise capital base worth Tk 1.75 billion, officials said. It has also extended the timeframe for the listing of MI Cement and MJL Bangladesh by two weeks more. The conditional approval of Northern Power and the time extension of MI Cement and MJL Bangladesh came Thursday at a commission meeting, chaired by Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khondker. The SEC spokesman said, the commission has extended the timeframe for the listing of MI Cement and MJL Bangladesh following some development. Earlier, the regulator extended timeframes twice for the listing the companies. As per regulator's conditional nod, Northern Power Solution will issue 17,50,000 bonds of Tk 1000 each. The company will pay 18 per cent interest per year against the bond and the interest is payable quarterly with equal principal. According to regulator's condition, the company will not be allowed to issue bond through private placement. "The bonds will be issued to institutional investors only," SEC spokesman Mohammad Saifur Rahman told the reporters. He said the intending institutional investors will also have to transfer their bonds to other institutional investors with prior regulatory consent. "This condition has been attached with the bond approval of the company to rein in any possible illegal placement business on the bond system," another SEC official said, on the condition of anonymity. The tenure of the bonds of Northern Power is four years with a grace period of six months. The company will have to pay out its debt in cash, if it intends to disburse the arrears before going public. It will also be allowed to pay out the money, collected through bond, by converting its fifty per cent bonds in shares. "In that case, the shares' price will be determined through the process of Initial Public Offering (IPO)," Mr. Rahman said. The SEC gave its consent to the bond issue of Northern Power after the company assured the regulator in written to comply with the above mentioned conditions. The amount of company's bond redemption is 25 per year. The company will enjoy unconditional right for its redemption before the completion of its tenure. In December last, the company's paid-up capital reached to Tk 910 million. As per securities rules, the company will have to go public within one year from the date its capital exceeds Tk 500 million. +
The securities regulator has attached conditions with the approval of fifty per cent convertible bond issue of Northern Power Solution Limited to raise capital base worth Tk 1.75 billion, officials said. It has also extended the timeframe for the listing of MI Cement and MJL Bangladesh by two weeks more. The conditional approval of Northern Power and the time extension of MI Cement and MJL Bangladesh came Thursday at a commission meeting, chaired by Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khondker. The SEC spokesman said, the commission has extended the timeframe for the listing of MI Cement and MJL Bangladesh following some development. Earlier, the regulator extended timeframes twice for the listing the companies. As per regulator's conditional nod, Northern Power Solution will issue 17,50,000 bonds of Tk 1000 each. The company will pay 18 per cent interest per year against the bond and the interest is payable quarterly with equal principal. According to regulator's condition, the company will not be allowed to issue bond through private placement. "The bonds will be issued to institutional investors only," SEC spokesman Mohammad Saifur Rahman told the reporters. He said the intending institutional investors will also have to transfer their bonds to other institutional investors with prior regulatory consent. "This condition has been attached with the bond approval of the company to rein in any possible illegal placement business on the bond system," another SEC official said, on the condition of anonymity. The tenure of the bonds of Northern Power is four years with a grace period of six months. The company will have to pay out its debt in cash, if it intends to disburse the arrears before going public. It will also be allowed to pay out the money, collected through bond, by converting its fifty per cent bonds in shares. "In that case, the shares' price will be determined through the process of Initial Public Offering (IPO)," Mr. Rahman said. The SEC gave its consent to the bond issue of Northern Power after the company assured the regulator in written to comply with the above mentioned conditions. The amount of company's bond redemption is 25 per year. The company will enjoy unconditional right for its redemption before the completion of its tenure. In December last, the company's paid-up capital reached to Tk 910 million. As per securities rules, the company will have to go public within one year from the date its capital exceeds Tk 500 million. +