Envoy Textiles has raised Tk 70 crore through commercial papers, a short-term unsecured debt instrument.
City Bank Capital, an investment bank, arranged the subscription of commercial papers for the textile company, with Pubali Bank, Prime Bank and Industrial Promotion and Development Company of Bangladesh as investors, according to a press statement.
A commercial paper is issued by companies to meet their interim financing needs. It is issued at a discount from the prevailing market interest rates.
Kutubuddin Ahmed, chairman of Envoy Group, Ershad Hossain, managing director of City Bank Capital, Tanzim Alamgir, head of structured finance at City Bank Capital, and representatives from participating banks and financial institutions were present at the subscription closing ceremony in Dhaka Wednesday.
Since it is not backed by collateral, only firms with excellent credit ratings can find buyers without having to offer a substantial discount (higher cost) for the debt issue.
“As one of the leading textile companies in the sector, Envoy Textiles has greatly contributed to the growth of textiles and denim exports throughout the world,” said Ahmed.
“Our motivation lies in delivering utmost client satisfaction, engaging in relentless innovation in our production to enhance the quality of our fabrics.”
Envoy Textiles, a concern of Envoy Group, is one of the leading companies in the textile sector, manufacturing high-quality denim fabrics for clients across the g1obe.
Envoy Textiles engages cutting-edge technology in their manufacturing process, and is the pioneer in bringing rope dyeing technology to Bangladesh.
Over the years, the company has grown to become the largest denim producing unit in Bangladesh, with an annual turnover of Tk 547 crore.