LankaBangla issues Tk 300cr bonds to attract diverse investors

LankaBangla Finance has recently issued non-convertible, zero-coupon bonds worth about Tk 300 crore to attract a diverse group of investors, including individuals, corporates, banks, insurance companies, mutual funds, and pension and gratuity funds.

This marks the fourth bond issued by LankaBangla Finance till date, said a press release.

This bond has been issued in accordance with the Bangladesh Securities and Exchange Commission (Debt Securities) Rules, 2021 after receiving consent from both Bangladesh Bank and the BSEC.

The bond has been issued in dematerialised form and will be listed on the Alternative Trading Boards of Dhaka Stock Exchange and Chittagong Stock Exchange.

IIDFC Capital Limited is the trustee to the issue and Green Delta Capital Limited has acted as the mandated lead arranger.

LankaBangla Finance has been proactively seeking to diversify its funding sources, including issuing bonds to ensure better matching of assets and liabilities.

In addition, the commission is working to develop the country's bond market to offer investors more fixed-income investment opportunities.

A zero-coupon bond is sold at a discount of its face value and redeemed at face value at maturity without paying any interest during the term.