The Bangladesh Securities and Exchange Commission has approved a proposal from a leading non-listed food and beverage company to raise Tk 5 billion through the issuance of zero-coupon bonds. This strategic move, approved during a recent meeting presided over by the commission’s chairman, highlights a shift toward alternative financing as corporations navigate tighter banking liquidity and high borrowing costs. The bond is structured as an unsecured, non-convertible, and fully redeemable instrument, meaning it will be issued at a discount and redeemed at face value without periodic interest payments.
The bond units, each carrying a face value of Tk 1 million, will be offered via private placement to institutional investors, including banks, insurance companies, and high-net-worth individuals. With tenures ranging from six months to five years, the issuance provides flexibility for investors while allowing the company to align its repayment obligations with long-term revenue growth. A prominent insurance firm has been appointed as trustee to safeguard investor interests, while a dedicated investment firm will manage the fund. The proceeds are expected to support the expansion and operational needs of the manufacturer, known for its significant market share in the regional beverage sector.
