Bangladesh’s Paramount Textile PLC is going to raise funds of Taka 270 crore by issuing a certain kind of non-convertible, fully redeemable, and unsecured zero-coupon bond.
A zero-coupon bond is a type of debt instrument that is traded at a significant discount and does not bear interest. When the bond matures and is redeemed for its full face value, it will produce a profit.
The Bangladesh Securities and Exchange Commission approved the bond during a meeting held last week at its office in Agargaon, Dhaka.
The discount rate on the bond will be between 9 to 12 per cent. It would be sold to institutional and high-net-worth investors through private placement, with each unit having a face value of Taka 10 lakh.
With the bond proceeds, the textile maker will repay bank loans and expand its business.
Sena Kalyan Insurance is the bond’s trustee, and NDB Capital Ltd. is its arranger. The bond will be posted on the stock exchanges’ alternative trading platform.
