Beximco to raise $350m from foreign investors by issuing bonds

The local business group Beximco has decided to raise $350 million from foreign investors by issuing foreign currency convertible bonds to expand its textile business.

The company in a posting on the Dhaka Stock Exchange web site on Monday said that that the board of directors of Beximco approved issuance of the $350 million bonds and the coupon rate and conversion price would be fixed at the time of issue, subject to the approval of shareholders in an emergency general meeting, Board of Investment, Bangladesh Bank and SEC.

It said that the bonds would be converted into a maximum of 100 million ordinary shares. The company has appointed Jones Day and Ernst and Young to raise the funds.

'The funds so raised shall be utilised for meeting capital expenditure for expansion programmes, working capital and repayment of debts.'

Beximco Group vice-chairman Salman F Rahman told New Age on Monday that they would raise the funds from the foreign investors. 'We will use most of the funds for expansion of textiles and garments businesses,' he said.

Source : New Age