Renata and City Bank Capital holds an exclusive event celebrating Renata’s capital restructuring journey

Renata PLC, a leading name in the pharmaceutical industry, and its sole financial advisor, City Bank Capital Resources Ltd. (CBCRL), one of the leading investment banks in Bangladesh, jointly organised an exclusive event to commemorate a significant milestone in Renata PLC's financial restructuring journey.

The event at Renaissance Hotel Dhaka brought together some of the top officials of renowned private commercial banks and esteemed corporate leaders, creating an inspiring platform for collaboration, discussion, and progress in Bangladesh's evolving financial landscape. 

The event highlighted the success of Renata and CBCRL's collective effort to reduce Renata's average cost of capital by replacing high-cost borrowings with freshly raised fixed-rate securities: fully redeemable preference shares, zero coupon bonds, and fixed-rate term loans, all amounting to BDT 536 crore.

The CEO of City Bank Capital, Mr Ershad Hossain, said, "These securities were part of a transformative debt restructuring initiative aimed at mitigating liquidity and interest rate risk resulting from the conversion of short-term debt to long-term debt at a low-cost relative to the current market pricing. It showcases how tailored financial solutions can drive corporate growth and foster resilience, even in challenging times."

Now, Renata's management has decided to issue preference shares worth Tk325 crore to repay the existing high-cost loans, subject to approval from the shareholders and subsequently from BSEC. The proposed preference shares will be non-cumulative, non-participative, redeemable, or fully convertible.

The CFO of Renata PLC, Mr Mustafa Alim Aolad FCA (ICAEW), said, "The proposed instrument aims to strengthen Renata's balance sheet, optimise its debt-equity ratio, and ensure long-term financial sustainability. This capital restructuring plan ensures financial resilience and enables us to seize new opportunities."

The event was graced by the esteemed presence of prominent leaders in the banking and financial sector. Among them were Mr Aziz Al Kaiser, Chairman of City Bank PLC; Mr Romo Rouf Chowdhury, Chairman of Bank Asia; and Mr Aziz Al Mahmood, Chairman of City Bank Capital Resources Limited. Additionally, the Managing Directors who honoured the event with their presence included Mr Selim R. F. Hussain of Brac Bank, Mr. Ali Reza Iftekhar of Eastern Bank PLC, Mr Mashrur Arefin of City Bank PLC, Mr Sohail R. K. Hussain of Bank Asia, Mr Mohammad Ali of Pubali Bank, Mr Sheikh Mohammad Maroof of Dhaka Bank, Mr Hassan O. Rashid of Prime Bank, Mr  Monzur Mofiz of One Bank, Mr M. Jamal Uddin of IDLC, and Mr Rizwan Dawood Shams of IPDC. Their distinguished participation added immense value and grace to the occasion.