Bangladesh Securities and Exchange Commission (BSEC) greenlit a zero-coupon bond for Beximco, a major conglomerate in Bangladesh.

The bond aims to raise Tk 15 billion from institutional investors and high-net-worth individuals.

This type of bond, known as a zero-coupon bond, doesn’t pay interest upfront but is sold at a significant discount. It gains profit upon maturity when redeemed for its total face value.

Each Beximco 1st Unsecured Zero-Coupon Bond unit is priced at Tk 50,000, with a 15% discount. When it matures in 5 years, its total face value will be Tk 26.25 billion, as per the BSEC press release.

Beximco plans to use the funds to repay bank loans and support the developer of Mayanagar. Mayanagar is a mixed-use, multipurpose real estate project on 100 acres along the Nabinagar-Chandra Highway.

The BSEC’s approval comes about three weeks after Beximco’s board of directors greenlit the bond issuance. The purpose is to settle existing loans and contribute to a joint venture with Sreepur Township.

Beximco owns 75% of the project land, while Sreepur Township owns 25%. The profits from the venture will be distributed accordingly.