Brac on Wednesday became the country's first non-government organisation (NGO) to receive approval for issuing zero-coupon bonds worth Tk 1,350 crore, to strengthen its microfinance initiative.
The decision as taken at the 760th meeting of Bangladesh Securities and Exchange Commission, presided by Prof Shibli Rubaiyat-Ul-Islam, its chairman, said a press release.
The bonds will have a tenure starting from 1.5 years up to 5 years, and will be unsecured, non-convertible, and fully redeemable.
The bonds will be issued to institutional investors and high net-worth individuals through private placement.
MTB Capital is assigned as the trustee, while another local investment bank, RSA Capital, has been mandated as the lead arranger for the bonds.
Although the bond is meant for private placement, the commission has set a condition for making the bond tradable at the alternative trading board of the stock exchanges.
