The stock market regulator has approved two companies' proposals to raise Tk 4 billion in total through issuing zero-coupon bonds.
The approval came at a meeting of Bangladesh Securities and Exchange Commission (BSEC) held on Thursday, with its Chairman Prof Shibli Rubayat-Ul-Islam in the chair, said a BSEC statement.
As per the BSEC approval, Paramount Textile will raise Tk 2.5 billion and RANCON Motorbikes Tk 1.50 billion by issuing zero-coupon bonds through private placement to institutional investors and high-net-worth individuals.
Paramount Textile's zero-coupon bond will be non-convertible, transferable, fully redeemable and unsecured. The face value of each unit is Tk 1 million and the range of discount rate is 9 per cent to 12 per cent, according to the BSEC statement.
Through the bond issue, Paramount Textile will reduce the business operational costs (by repaying bank loan) and expand business.
Sena Kalyan Insurance Company Ltd is the trustee of the bond while NDB Capital is the lead arranger.
The bond will be listed on the alternative trading platform.
RANCON Motorbikes will raise Tk 1.50 billion through zero-coupon bonds and whose value is Tk 2.08 billion through private placement.
RANCON Motorbikes Ltd. (RMBL) is the only manufacturer and country distributor of SUZUKI Motor Corporation for SUZUKI Motorcycles. RMBL is one of the most prominent ventures of the RANCON Group and a premier conglomerate of Bangladesh.
RANCON Motorbikes' zero-coupon bond will be unsecured, non-convertible and fully redeemable bond. The face value of each unit will be Tk 100,000, according to the BSEC statement.
Through the bond issue, RANCON Motor will repay a portion of the bank loan.
Community Bank Investment is the trustee of the bond while City Bank Capital Resources is the arranger.
The bond will be listed on the alternative trading platform.
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