62 more investors convert Sukuk into Beximco shares

FE Team | Published: December 27, 2023 22:21:16

FE REPORT
Another 62 investors have converted their Beximco Green Sukuk worth around Tk 1.76 billion into ordinary shares in Bangladesh Export Import Company (Beximco) in the second year of the bond.
In the first year of the bond, 325 Sukuk investors converted 20 per cent of Sukuk worth around Tk 1.73 billion into Beximco shares.
In a stock exchange filing on Wednesday, the company said 48 Sukuk holders applied to convert 20 per cent and 14 Sukuk holders applied to convert 40 per cent of their holdings into Beximco shares in the second year.
After the conversion, nearly 2.35 million ordinary shares of Beximco have been credited to the respective beneficiary owners accounts of 62 Sukuk holders who applied for conversion.
Investment Corporation of Bangladesh (ICB), the trustee of Beximco Green Sukuk, informed the investors that the record date for conversion was December 24.
The 62 applicants had a total holding of more than 5.13 million Beximco Sukuks in their names, of which 2.03 million Sukuk were converted into 2.35 million ordinary shares of Beximco with a conversion price of Tk 86.7 a piece.
As per the regulatory approval, the conversion rate is 25 per cent less than the 20-day average closing price of Beximco shares of Tk 115.6 each.
After the latest conversion, a total of 280.95 million Sukuks will remain on the market.
Beximco floated the Sukuk worth Tk 30 billion with a five-year tenure in 2021 to finance its two solar power plants and its textile division's green expansion.
The investors, mainly banks and some other institutions, have the right to convert 20 per cent of their Sukuk units per year into Beximco shares at 25 per cent discounts on the 20-day average closing price of the Beximco shares prior to the record date. Unexecuted conversion rights can also be exercised in later years.
On Wednesday, the Sukuk, which has a face value of Tk 100, traded at Tk 85 on the Dhaka Stock Exchange.
Meanwhile, the latest conversion increased the number of Beximco shares by 2.35 million.
When company assets and earnings are divided into an increased number of shares, stock prices are adjusted down in proportion to the dilution.
Beximco has reported a loss of nearly Tk 708 million in the July-September quarter this financial year as against Tk 3.36 billion profit in the same quarter a year before.
Thus, earnings per share stood at negative Tk 0.79 for the September quarter this year, as against Tk 3.83 for the same quarter last year.
Beximco also suffered a loss of Tk 578 million in the final quarter of FY23, bringing down its annual profit to Tk 7.10 billion.
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