Investor anxiety is mounting over Beximco’s apparel division following recent layoffs across 15 of the conglomerate’s units. This development comes in the wake of significant political changes in Bangladesh and has heightened fears regarding the recovery of investments tied to the Beximco Green Sukuk al-Istisna, the debt instrument from the company.
The layoffs, which began in February, are a response to a persistent shortage of work orders in Beximco’s export-oriented garment and textile factories located in Gazipur. This situation has left the cash-strapped group struggling to maintain operations, causing investors to question the viability of recovering their principal amounts from the sukuk.
Beximco Ltd., which had previously issued asset-backed sukuk bonds worth Tk 3,000 crore to finance its solar power projects and expand its textile division, is now facing turmoil. The company’s financial struggles have been exacerbated by a series of events following the ousting of former Prime Minister Sheikh Hasina last August, which led to the arrest of Salman F Rahman, an influential figure within the company.
Recent data from the Bangladesh Bank indicates that Beximco Group owes nearly Tk 50,000 crore in bank loans, with a significant portion classified as non-performing. These financial irregularities have raised serious concerns among investors, especially as the company continues to lay off workers from its apparel units.
A banking official, speaking anonymously, expressed that the distress faced by the issuer and the ongoing layoffs understandably fuel investor fears regarding the return of their principal investment. The situation is compounded by the potential delays in the completion of other projects funded by the sukuk, which could further impact repayment schedules.
Investor confidence has taken a significant hit, with Beximco Green Sukuk al-Istisna trading at Tk 46 per unit – 54 per cent below its face value of Tk 100. Institutional investors have urged the Investment Corporation of Bangladesh (ICB), the trustee of the sukuk, to address these pressing concerns to prevent what could be the country’s largest sukuk from defaulting.
Bharat Tex Special Report 2026 
