Akij Food to raise Tk 500cr thru zero-coupon bond

Akij Food and Beverage Limited (AFBL), a concern of Akij Venture Limited, has initiated the process to raise Tk 500 crore for the company's expansion through the issuance of a zero-coupon bond.

Structured to deliver an attractive return, the five-year bond is intended to support the company's ongoing expansion by enhancing trade operations, improving cash flow management, and diversifying funding sources beyond traditional bank financing.

This strategic move not only underscores the company's forward-looking financial approach but also introduces a secure and innovative investment instrument for Bangladesh's expanding investor community.

A signing ceremony for the arrangement agreement was held recently at AFBL's head office in Dhaka, according to a press release.

Sk Shamim Uddin, managing director of AFBL, signed the agreement as issuer with Md Minhaz Zia, chairman of North Star Investments, who acted as arranger.

Zhuang Lifeng, chairman of Lion City Advisory Limited, also signed as adviser. Mesbah Uddin Ahmed, managing director of IDLC Investments Ltd, signed as trustee.

AFBL's leadership position in the market was further affirmed when Mojo, its flagship beverage brand, was recognised as the "Most Loved Brand" in 2024 by the Bangladesh Brand Forum.

In the alternative carbonated soft drink (CSD) category, Speed also secured the title of "Most Loved Brand" in 2024, demonstrating the company's deep consumer connection and strong brand equity.

Through this bond issuance, AFBL reasserts its role as a key catalyst for industrial innovation and capital market advancement in Bangladesh, continuing on its path of excellence as a proudly Bangladeshi fast-moving consumer goods powerhouse.

Senior officials from Akij Food and Beverage Limited, North Star Investments Limited, Lion City Advisory Limited, and IDLC Investments Limited were also present.