Akij Food gets nod to raise Tk 500cr through bonds

Akij Food & Beverage Ltd secured approval from the capital market regulatory body to raise Tk 500 crore through issuing bonds, aiming to strengthen its financing base.

The Bangladesh Securities and Exchange Commission (BSEC) gave the approval yesterday at a commission meeting at its office in the capital.

According to an official BSEC press release, the company will raise the fund through floating an unsecured, non-convertible, fully redeemable zero-coupon bond with a tenure ranging from six months to a maximum of five years.

A zero-coupon bond is a debt instrument that does not pay interim coupons but instead trades at a deep discount, rendering profit at maturity, when the security is redeemed for its full face value.

The bond will be issued to banks, non-bank financial institutions, insurance companies, institutional investors, and high-net-worth individuals through private placement. Each unit of the bond will carry a face value of Tk 10 lakh.

Sena Insurance PLC will act as the trustee for the bond, while North Star Investments (BD) Limited has been appointed as the fund arranger.

According to the company’s website, Akij Food started its journey in 2006. It exports its products to over 40 countries in Asia and Africa. The company holds several popular brands including Mojo, Frutika, and Speed.