The coupon rate of the bond will be 6.5% to 8%

May 23, 2022, 7:55 PM

Last modification: May 23, 2022, 7:58 PM

Photo- Salauddin Ahmed Paulash/TBS

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Photo- Salauddin Ahmed Paulash/TBS

Envoy Textiles Limited – a leading denim manufacturer and exporter – will issue a Tk 200 crore bond for the purchase of machinery for its power station and the repayment of loans.

The non-convertible, fully redeemable, unsecured zero-coupon bond will be issued by private placement and will be listed on the Alternative Trading Board (ATB).

The Bangladesh Securities and Exchange Commission (BSEC) on Monday approved the issuance of the bond, reads a BSEC press release.

According to company sources, Envoy is currently using a 10 MW power connection by the Rural Electrification Board (REB) along with its diesel generators which can produce 4 MW of electricity.

The company will discontinue the REB connection as its quality is not up to par to support the Envoy units, and will also discontinue the generators due to an increase in their operating cost.

Sources said the company will use Tk 168.4 crore to purchase 19 MW gas-based captive power plant machinery, and the rest to repay loans.

The bond’s coupon rate will be 6.5% to 8%. The face value per lot is Tk 20 lakh, where each lot consists of 10 bonds, the press release reads.

The minimum subscription at individual level is Tk20 lakh and Tk1 crore for institutional.

UCB Investment is acting as trustee and NDB Capital Limited is lead arranger of the bond.

Envoy Textiles was listed on the stock exchange in 2012 and is the first textile factory in the world to achieve a Platinum award, certified by Leadership in Energy and Environmental Design (LEED).