Rancon Motor Bikes gets nod for Tk150cr bond
Rancon Motor Bikes Limited, Suzuki motorcycle manufacturer and distributor, has been allowed to raise Tk150 crore through issuing an unsecured, non-convertible and fully redeemable zero-coupon bond.
The Bangladesh Securities and Exchange Commission (BSEC) allowed the company to issue the bond for repaying loans.
Its face value is Tk208.17 crore and the investors will get the bond at a discount rate of 11-12%.
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Community Bank Investment Limited is acting as the trustee of the bond and City Bank Capital Resources Limited is acting as the arranger. Besides, the bond will be listed on the Alternative Trading Board of the Dhaka Stock Exchange.
According to the company's website, Rancon Motor Bikes started the business in 2012.
Suzuki and Rancon jointly established a factory in Gazipur for manufacturing Suzuki bikes locally and the production started in 2018.
Paramount Textile to raise Tk250 crore
Besides, the BSEC also allowed Paramount Textile to raise Tk250 crore through issuing an unsecured zero-coupon bond, with a discount rate of 9-12%.
The textile miller will use the bond amount for business expansion.
Sena Kalyan Insurance Company Limited is acting as trustee of the bond and NDB Capital Limited is acting as arranger. The bond will be listed on the Alternative Trading Board.
Its shares closed at Tk69.60 each at the Dhaka bourse on Thursday, which was 2.96% up from the previous session.
Paramount Textile paid a 10% cash dividend to its shareholders for fiscal year 2022-23. During the last fiscal year, it posted a net profit of Tk122 crore and the earnings per share were Tk7.51.
In the July-December of FY24, its earnings per share fell by 23% to Tk3.06, compared to the previous year at the same time.
The company said in the financial statement, earnings per share have significantly decreased because the export target did not reach the expected level, which resulted from the worldwide economic crisis.
