Beximco gets nod to issue Bangladesh’s first green Sukuk bond

The Bangladesh Securities and Exchange Commission (BSEC) has greenlighted Beximco, the flagship company of Beximco Group, to issue a green Sukuk bond worth Tk 3,000 crore for the first time in Bangladesh.

The decision was taken at the commission’s regular meeting on Wednesday, according to a statement of the stock market regulator.

A Sukuk is an Islamic financial certificate, similar to a treasury bond, which complies with Shariah laws.

The BSEC approved Beximco’s five-year secured convertible or redeemable asset-backed green Sukuk bond, said the statement.

The bond will be issued through private placements valued at Tk 2,250 crore and initial public offers worth Tk 750 crore. The face value of the bond is Tk 100 per unit. Its minimum subscription value is Tk 5,000, minimum lot is 50. It has a minimum periodic distribution of 9 percent, said the BSEC.

The bond will be issued to finance construction goals and equipment procurement, in the process making it the largest Sukuk issuance from the Bangladeshi private sector.

The raised fund will be used for the construction of the solar projects of Teesta Solar and Korotoa Solar, the two subsidiaries of Beximco Power Company, and financing and refinancing the machinery and equipment required for the expansion of Beximco’s textile division.