Beximco returning debenture dues of 2005

Beximco at last is going to return money of general investors who invested in its two debentures in 1995.

The tenure of the debentures ended in 2005 but many investors are yet to get their money back.

Debentures are debt instruments issued by companies in order to raise funds for a certain period of time, most often for 10 years. During this period, investors who purchased a debenture will receive interest against their investment.

"As per the information of Investment Corporation of Bangladesh (ICB), Beximco Limited has taken initiative to settle liabilities of debenture holders of Beximco Denims Limited and Beximco Textiles Ltd issued by Beximco Limited, where, ICB has been working as Trustee," the DSE said in post yesterday.

In this regard, debenture holders are requested to communicate with documentary evidence with the ICB, it added.

After inclusion of new leadership in the BSEC, the regulator has taken initiatives to return the funds that were raised by eight debentures of many companies about 30 years ago, totalling Tk 150 crore.

Eight debentures -- Bangladesh Luggage Industries, Bangladesh Zipper Industries, Beximco Knitting, Beximco Fisheries, Beximco Textiles, Beximco Denim, Aramit Cement and BD Welding Electrodes -- were listed with Dhaka Stock Exchange (DSE) back in the 1990s.

And although their tenures ended in between 2002 and 2008, the issuers did not repay the capital raised through investors.

All the issuers will have to pay back the investors, said a top official of the BSEC seeking anonymity.

They will return the money in phases, he added.