Bangladesh Export Import Company (BEXIMCO) has announced to commence subscription of 'Beximco 1st Unsecured Zero Coupon Bond' on Sunday (April 28), aiming to collect Tk 15 billion.
The bond subscription will continue until May 15, according to a statement published on Thursday.
A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount.
It will render a profit at maturity when the bond is redeemed for its full face value.
The Bangladesh Securities and Exchange Commission on March 31 allowed Beximco to issue zero-coupon bonds for repaying high worth debt and investing in Sreepur Township project.
Of the funds to be raised through the non-convertible, redeemable, unsecured bonds, Tk 10 billion will paid as a loan to Sreepur Township for the development of Mayanagar project, while the remaining money will be used to repay bank loans of Beximco.
The minimum investment threshold of the bond is Tk 50,000, with no upper limit, making it accessible to a broad range of investors.
This opportunity is available on a first-come, first-served basis, emphasizing its limited nature and the potential for a quick sell-out due to its attractive features, according to the statement.
IFIC Investment is the arranger and Sandhani Life Insurance is the trustee of the bond. The zero coupon bonds offer an unprecedented discounted rate of 15 per cent, the highest in the market.
The investment is particularly attractive due to its high return rate, where an investment of Tk 100,000 will yield a total return of Tk 175,000 at the end of five years, including the principal amount.
The returns are especially appealing for non-Resident Bangladeshis (NRBs) and local wage earners, said the statement.
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