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Trust Islami Life Insurance to raise Tk 160m through IPO

BSEC also approves zero-coupon bonds by BURO Bangladesh

FE REPORT | January 26, 2023 00:00:00

Trust Islami Life Insurance is set to raise Tk 160 million from the primary market by floating an IPO (initial public offering) under fixed price method.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the IPO proposal at a meeting held at its office in the capital.

As per the regulatory approval, the company will issue 16 million ordinary shares at Tk 10 each.

The IPO fund will be utilised to invest in treasury bonds, in stocks and FDR (fixed deposit receipt) apart from bearing the IPO expenses, said a release issued by the securities regulator.

The company had a surplus fund of Tk 7.32 million at the end of June 2022 as per the actuarial valuation report.

BMSL Investment is working as the issue manager of Trust Islami Life Insurance.

The company will not be allowed to recommend, approve or distribute any dividend before its listing on the bourses.

At Wednesday's meeting, the securities regulator approved another proposal of Tk 1.50 billion zero-coupon bonds to be issued by BURO Bangladesh.

The bonds will be issued to financial institutions, insurers, corporate entities, and high net-worth individuals through private placements.

The bonds are non-convertible, unsecured, fully redeemable and sustainable financing instruments.

BURU Bangladesh will utilise the fund to expand small credits or SME portfolios.

The offer price of the bonds will be Tk 1 million per unit and an investor will need Tk 4 million for one lot.

Sena Kalyan Insurance Company and Standard Chartered Bank are working as trustee and arranger of the bonds. The bonds will be listed on the exchange's Alternative Trading Board (ATB).

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