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United Finance to issue Tk 5.0b bond, recommends 10pc div

Its share price slumps 8.15pc despite the news

FE Report | February 25, 2019 00:00:00

The board of directors of United Finance has decided to issue non-convertible zero coupon bonds worth up to Tk 5.0 billion (in face value), said an official disclosure on Sunday.

The company will issue the bond through private placement (unsecured, unlisted) only in multiple tranches if required, with tenure up to five years from the issue date, according to the disclosure.

The bond issue, however, subject to the approval of the regulatory authorities like Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), said the disclosure.

The board of directors of the United Finance has also recommended 10 per cent cash dividend for the year ended on December 31, 2018.

The final approval of dividend will come during the annual general meeting (AGM) scheduled to be held on April 24 at 10am in Dhaka.

The record date is on March 18.

The company has also reported earnings per share (EPS) of Tk 1.48, net asset value (NAV) per share of Tk 16.67 and net operating cash flow per share (NOCFPS) of Tk 6.72 in the negative for the year ended on December 31, 2018 as against Tk 1.44, Tk 16.95 and Tk 0.45 respectively for the same period of the previous year.

United Finance, which was listed on the Dhaka bourse in 1994, disbursed 10 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2017.

Each share of the company closed at Tk 21.40 on Sunday, slumping by 8.15 per cent over the previous session at the Dhaka Stock Exchange.

The company's paid-up capital is Tk 1.87 billion, authorised capital is Tk 3.0 billion and the total number of securities is 187.11 million.

The sponsor-directors own 51.68 per cent stake in the company, while institutional investors own 23.25 per cent, foreign investors 1.07 per cent and the general public 24 per cent as of January 31, 2109.

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