Subscription period for Beximco's sukuk extended till Sep 30

The stock market regulator has again extended the subscription period for Beximco's sukuk till September 30 as it failed to attract general investors.

The subscription of sukuk through initial public offering (IPO) started on August 16 that was supposed to end on August 23 but the time was extended till September 6.

Bangladesh Securities and Exchange Commission allowed Beximco to issue Tk 3,000 crore Shariah-compliant sukuk on July 8.

Half of the Tk 3,000-crore fund will be raised through private placement and the sukuk worth Tk 750 crore will be raised from the existing shareholders of the Beximco.

The remaining Tk 750 crore will be raised through an IPO.

The regulator informed the company in a letter that the public offer would be cancelled if it was not subscribed by September 30.

The BSEC allowed the company to interchange the sukuk subscription amount between the IPO and the private placement if any of them remains undersubscribed.

Beximco's sukuk is convertible asset-backed green sukuk, which will have a tenure of five years.

With the sukuk proceeds, the company will finance solar projects and expand its textile factory.

Each unit of the sukuk would be Tk 100 where minimum subscription amount should be Tk 5,000.

Minimum periodic distribution rate is 9 per cent.