LankaBangla Securities to raise Tk 200cr
LankaBangla Securities, a leading stockbroker, has decided to raise Tk 200 crore by issuing non-convertible zero coupon bonds to meet the company's cash needs.
The stockbroker will sell the bonds at a 10.5 percent discount rate from their face value, and the maturity period will be three years.
“As our business is expanding, we need more working capital. That's why we have decided to raise the fund,” said Mohammad Khairul Anam Chowdhury, chief executive officer of LankaBangla Securities.
As many as 25 institutions can purchase the bonds and each bundle of the bonds will be worth Tk 8 crore, he said.
A zero coupon bond is referred to as a pure discount bond or simply discount bond, where face value is the amount paid to bondholders at maturity. The term discount bond is used to refer to the method the bonds are sold by, with price being a discount from the face value instead of providing periodic dividends or interest.
The issuance of the bonds of LankaBangla Securities is, however, still subject to approval by the shareholders, Bangladesh Securities and Exchange Commission, and other regulatory authorities.
LankaBangla Securities is a 90.91 percent owned subsidiary of LankaBangla Finance, which is a non-bank financial institution listed since 2006.
On the Dhaka Stock Exchange yesterday, each LankaBangla Finance share traded between Tk 29.1 and Tk 30.8 before closing at Tk 30.5.
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