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Private offering of corporate bonds drops in FY19

FE ONLINE REPORT | Published: November 11, 2019 13:14:46 | Updated: November 12, 2019 09:49:41


A representational image -- Collected

Issuance of corporate debt securities or bonds through private placement declined in the past fiscal year (FY), according to statistics available with the central bank.

It showed that some 23 companies issued bonds worth Tk 127.50 billion in FY19.

Earlier in FY18, some 29 companies issued bonds through private placement. The total value of the issued bonds was around Tk 107 billion.

All the bonds were offered privately, meaning that there was no public listing and no secondary transactions of these debt securities.

Central bank statistics, complied using the data supplied by Bangladesh Securities and Exchange Commission (BSEC), also showed that the outstanding amount of privately offered corporate bonds stood at Tk 372.12 billion in last seven years.

At the same time, the value of the privately issued debenture stood at Tk 111.95 billion. A total of 16 companies issued these corporate debentures in the last seven years since FY13.

Debenture is generally known as unsecured bond and so, compared to bonds, it bears higher risks.

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