BSS, Dhaka :
Beximco Ltd has published the Information Memorandum (IM) online for Bangladesh’s first ever ‘Green Sukuk’ for Taka 3,000 crore after getting approval from the Bangladesh Securities and Exchange Commission (BSEC) last Thursday.
The five-year term asset-backed Green Sukuk is convertible, redeemable and participative, the IM says.
The company will allocate 50 percent of the Sukuk issue through private placement. The 25 percent will be offered to the existing shareholders of the company, and the rest through public offer.
The subscription of the private placement, which will be done on a first-come-first-serve basis, will close on August 22, 2021, while subscription for existing shareholders and the general public will open on August 25, 2021 and close on August 27, 2021.
With the Sukuk proceeds, the company plans to funnel Taka 2,200 crore into a 200 MW solar plant in Gaibandha and a 30 MW solar plant in Panchagarh.
Together, they represent the largest solar project in the country. Revenue generation of the two solar plants is guaranteed by a 20-year Power Purchase Agreement (PPA) with the government, according to the IM.
The government has recently scrapped several coal-fired power projects and emphasized on climate-friendly green power generation projects instead.
The IM notes that Beximco seeks to cash in on the lucrative incentives offered by the government in green power projects. Its power plants will enjoy tax holiday until 2034, duty-free import and certain tariff and VAT concessions.
Balance Taka 800 crore will be used to install high speed energy efficient machinery, expand and modernize the existing green infrastructure of Beximco’s textile division, it adds.
