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BSEC Greenlights National Housing’s Tk 374.4cr Zero-Coupon Bond

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The Bangladesh Securities and Exchange Commission (BSEC) has granted approval to National Housing Finance and Investment for the issuance of a Tk 374.4 crore zero-coupon bond. This marks the company’s first venture into non-convertible, fully redeemable, and unsecured zero-coupon bonds. The approval was obtained during a BSEC meeting on Tuesday (28 November).

The zero-coupon bond will carry a discount rate of up to 9% and will be issued through private placement among institutional investors and high-net-worth individuals. The unit price of the bond is set at Tk 1 lakh. The funds raised through this bond issuance will be utilized by the company for providing loans in the housing sector, with an additional commitment to invest 10% of its income in government securities.

Local merchant bank IDLC Investments Ltd has been appointed as the trustee for the bond, while BRAC EPL Investments Ltd will serve as the arranger. The zero-coupon bond will be listed on the alternative trading board of the stock exchanges.

In Bangladesh, a zero-coupon bond is issued at a discount from its face value, and bondholders receive the face value at maturity. Notably, income from zero-coupon bonds in the country is exempt from income tax for both individual and corporate investors.

National Housing Finance and Investment Ltd, listed on the capital market since 2009, reported an earnings per share of Tk0.41 in the July to September quarter of 2023, compared to Tk0.69 in the same period of the previous year. As of October 31 this year, the company’s ownership structure includes sponsors and directors jointly holding 50.57%, the government holding 9.34%, institutions holding 10.47%, and general investors holding 29.62% of the company’s shares.

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Beximco Taps Iqbal Ahmed as New Managing Director

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Beximco Pharmaceuticals has announced the appointment of Iqbal Ahmed, a current director, as the new managing director for a five-year term.

hmed, who has been serving on the board since 1985, will assume the role pending approval from shareholders at the upcoming annual general meeting. The move follows the resignation of the company’s former managing director, Nazmul Hasan, who stepped down from the position after assuming a ministerial role in the government.

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6 More Companies to Enter ‘Z’ Categories Starting Tomorrow

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Starting tomorrow, Monday (March 4), shares of six companies will be transferred to the ‘Z’ category on the Dhaka Stock Exchange, as directed by the Bangladesh Securities and Exchange Commission (BSEC).

The decision stems from various factors, including the failure to host the annual general meeting, production shutdown for over six months, and many other reasons.

However DSE mentioned two companies from the textile sector, two from the pharmaceutical and chemical sector, one from the financial sector, and one from the insurance sector. The affected companies are Prime Textile, Prime Finance, New Line Clothings, Far East Islamic Life Insurance, AFC Agro Biotech, and Active Fine Chemicals Limited. The ‘Z’ category is typically assigned for companies facing financial troubles or regulatory issues, signaling caution for investors.

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Grameenphone’s Stock Plunge 8.72% after Lifting Floor

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The stock of Grameenphone (GP) experienced a significant decline of 8.72% immediately after the removal of the floor price restriction.

According to the directive of the Bangladesh Securities and Exchange Commission (BSEC), the floor price restriction on shares of Grameenphone Limited is set to be lifted from today, March 3rd.

Yesterday, GP shares were traded at Tk286.60 each. However, Today, experiencing a drop of Tk25.00 from the opening price at the Dhaka Stock Exchange (DSE). The session witnessed the exchange of a total of 7 lakh 43 thousand 710 shares, amounting to Tk19 crore 46 lakh.

This downturn in GP stocks had a notable impact, resulting in a decline in the key index DSEX, settling at 6,215 by the end of the day trading. The Bangladesh Securities and Exchange Commission (BSEC) had earlier issued a directive to withdraw the floor price restriction on Grameenphone stocks on 3 March. The floor price is the lowest set by the securities regulator, determining the minimum price at which a stock can be traded. In January, the BSEC lifted the floor price for most stocks, 18 months after its introduction.

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