The board of directors of Bangladesh Finance and Investment Company has decided to issue ‘BD Finance 1st Zero Coupon Bond’ worth Tk 2.0 billion for expansion of business and diversification of funding sources.
The nature of this bond is non-convertible, fully redeemable and unsecured zero-coupon bond. The tenure of the bond is three years and the discount rate will be 7.0 per cent to 7.50 per cent per annum, according to an official disclosure on Monday.
Bond units worth Tk 1.0 million each will be offered to eligible investors through private placement.
The City Bank Capital Resources and Sandhani Life Insurance Company are the mandated lead arranger and trustee of the bond respectively.
However, the bond issue is subject to the approval of the concerned regulatory authorities- Bangladesh Bank and Bangladesh Securities and Exchange Commission.
Each share of the company, which was listed on the Dhaka Stock Exchange (DSE) in 2007, closed at Tk 21 on Sunday.
Its shares traded between Tk 6.90 and Tk 28.90 each in the last one year.
In 2019, the company disbursed 12 per cent cash dividend.
The non-bank financial institution’s consolidated earnings per share (EPS) stood at Tk 0.55 for July-September 2020 as against Tk minus 0.09 for July-September 2019.
In nine months for January-September 2020, its consolidated EPS was Tk 1.02 as against Tk 0.14 for January-September 2019.
The consolidated net operating cash flow per share (NOCFPS) was Tk 2.98 for January-September 2020 as against minus Tk 0.27 for January-September 2019.
The consolidated net asset value (NAV) per share was Tk 17.39 as on September 30, 2020 and Tk 16.37 as on December 31, 2019.
The company has also informed that EPS increased due to realisation of capital gain from investment in shares as against capital loss compared to the same period of the previous year.
The NOCFPS increased due to conservative disbursement and realized gain from sale of marketable securities compared to the same period of previous year.
The company’s paid-up capital is Tk 1.67 billion and authorised capital is Tk 2.0 billion while the total number of securities is 167.52 million.
The sponsor-directors own 30.32 per cent stake in the company, while the institutional investors own 13.92 per cent and the general public 55.76 per cent as on October 31, 2020, the DSE data shows.