The country's capital market on Thursday witnessed the debut trading of Beximco Green Sukuk Al Istisna'a (BEXGSUKUK), the first of its kind that closed marginally higher than its face value of Tk 100 per unit.
Trading of the sukuk opened at the Dhaka Stock Exchange (DSE) with Tk 110 per unit and closed at Tk 101 as over 3.23 million units worth about Tk 339 million changed hands in 6006 trades on the day.
The price of the bond ranged between Tk 99.5 and Tk 110 at the DSE.
On the Chittagong Stock Exchange (CSE), it was traded at prices ranging between Tk 102 and Tk 110 per unit. A total of 754 trades were executed with a trading volume of 0.21 million units valued at Tk 23.18 million.
The debut trading of the SUKUK was marked by a ceremony at the DSE Tower in the capital where Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister and Vice Chairman of Beximco Group, was the chief guest.
"We are optimistic about future financing for the government's large projects through bonds," he told the function, stressing the need for bringing more derivatives in the capital market.
Mr Rahman pointed out two major weaknesses of the local market that are being discussed everywhere - it is mainly based on equity and the retail investors dominate the daily transactions.
"The equity and debt markets are almost the same in developed countries. The institutional investors own a majority stake in transactions of the developed markets," he said, adding that a market having the retailers' majority stake in transactions goes through frequent volatility.
The adviser appreciated the Bangladesh Securities and Exchange Commission (BSEC) for its work on removing the weaknesses of the country's stock market, but criticised the stock brokers for their poor role in trading. The investors manage their own portfolios, he added.
"The stock brokers are supposed to manage the portfolios of their clients. The stock brokers must adopt corporate practices in an effort to turn into institutions," said Mr. Rahman.
Addressing the function, BSEC Chairman Prof. Shibli Rubayat Islam said the commission would continue to achieve new targets amid obstacles.
"Apart from the blue and green bonds, the regulator's initiatives for bringing new derivatives will be visible soon," he said, adding that it is the time to come out of the traditional activities and introduce innovative products.
On July 8 in 2021, the BSEC accorded consent to Bangladesh Export Import Company (Beximco) as originator for issuance of the Beximco Green Sukuk of Tk 30 billion.
Of the amount, Tk 7.50 billion was raised through IPO (initial public offering). The units worth Tk 7.50 billion are for trading on the bourses.
The face value of the secured, convertible or redeemable asset backed green Sukuk is Tk 100 per unit. The rate of return of the Sukuk is 9.0 per cent plus margin while the margin is 10 per cent of the difference between base rate and annual dividend rate declared by Beximco.
The profit of Beximco's Sukuk will be paid on a semi-annual basis.