National Polymer’s zero coupon bond gets go-ahead

National Polymer gets go-ahead to issue transferable, redeemable, non-convertible, unsecured zero-coupon bond whose face-value is Tk 408.95 crore.

A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face-value.

The bond's yield to maturity is 8 per cent and it will raise the funds of Tk 300 crore through private placement. Its issue price for each unit is Tk 1,000.

The minimum subscription of the bond is Tk 3,000. With the bond proceeds, the polymer company will repay loans, buy machineries and build infrastructure.

Bangladesh Finance Ltd is its trustee. It would be listed at the alternative trading board.