MTB Capital Acts as arranger for Techno Drugs’ Tk 500 million convertible bond

Techno Drugs Ltd. approved the issuance of a convertible, redeemable bond at its 196th Board Meeting, held on May 14, 2026.

The issuance remains subject to shareholders' and regulatory approval. The company was listed on the capital market in 2024 and raised BDT 1,000.0 mn through the book-building method. MTB Capital Ltd and Techno Drugs Ltd have signed a partnership agreement to facilitate the issuance of the convertible bond, according to a press release.

Techno Drugs Ltd aims to raise BDT 500.0 mn through a convertible, redeemable, coupon-paying bond. The bond will comprise a 75% convertible portion and a 25% redeemable portion. The coupon rate will be a floating rate, structured as the 5-year treasury bond rate plus a margin, with a maturity period of 5 years.

The proceeds from the bond issuance will be utilized for restructuring the company's loan. The company's management believes that this initiative will contribute meaningfully to improve overall profitability.

In its most recent financial year, Techno Drugs Ltd recorded revenue of BDT 3,375 mn and a profit of BDT 232 mn for the year 2025. The company has also declared a 10% dividend for the same period.