Islamic Finance

Bangladesh's Beximco given go-ahead for issuance of Tk 30 bln green sukuk

Published 09 Jul,2021 via The Financial Express - The securities regulator has accorded consent to Bangladesh Export Import Company (Beximco) as originator for issuance of BEXIMCO Green Sukuk Bond of Tk 30 billion ($354.6 million).

As per the regulatory consent, of the total amount, Tk 15 billion will be raised through private placements, Tk 7.50 billion from existing shareholders of Beximco as rights option under private offer, and Tk 7.50 billion through IPO (initial public offering), the company said in a filing with the Dhaka Stock Exchange (DSE) on Thursday.

On June 23, the Bangladesh Securities and Exchange Commission (BSEC) granted primary approval for the BEXIMCO Green-Sukuk with some conditions.

Beximco Green Sukuk al Istisna'a shall be issued by Beximco Green-Sukuk Trust as asset-backed Shariah-compliant security.

Beximco will utilise the proceeds received from the subscription for implementing the solar projects of Teesta Solar and Korotoa Solar to produce electricity from renewable energy and transmit it to the national grid.

The company will also utilise the proceeds for expansion project financing and refinancing (non-interest bearing) of the textile machinery for expansion of the textile division of the Beximco, which shall ensure energy-efficient production, including wastewater treatment, waste prevention, and recycling, according to the filing.

The tenure of the asset-backed green sukuk will be five years and the offer price of the bond will be Tk 100 per unit.

The minimum subscription amount of the bond is Tk 5,000 and the market lot consists of 50 units.

The Investment Corporation of Bangladesh (ICB) is the trustee, and City Bank Capital Resources and Agrani Equity and Investment are issue manager of the Sukuk.

The regulatory consent has been accorded subject to the condition that the originator shall comply with relevant laws and regulatory requirements and shall adhere to the conditions imposed under Section-2CC of the Securities and Exchange Ordinance, 1969.

Each share of the Beximco, listed on the DSE in 1989, closed at Tk 92.40 on Thursday, gaining 1.87 per cent over the previous day. Its shares traded between Tk 13 and Tk 101.30 in the last one year.

The company has reported earnings per share (EPS) of Tk 2.38 for January-March 2021 as against Tk 0.12 for January-March 2020.

Its EPS rose to Tk 4.30 for July 2020-March 2021 as against Tk 0.66 for July 2019-March 2020.

The company provided 5.0 per cent cash dividend for the year ended on June 30, 2020.

The company's paid-up capital is Tk 8.76 billion, authorised capital is Tk 10 billion and the total number of securities is 876.31 million.

The sponsor-directors own 30.55 per cent stake in the company while the institutional investors own 15.18 per cent, foreign investors 1.47 per cent and the general public 52.80 per cent as of May 31, 2021, the DSE data show.

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