Rancon Motor Bikes Limited, a manufacturer and distributor of Suzuki motorcycles, has received approval to raise Tk150 crore through the issuance of an unsecured, non-convertible, fully redeemable zero-coupon bond.
The Bangladesh Securities and Exchange Commission (BSEC) has granted permission for the issuance of the bond, which will be utilized for repaying loans. With a face value of Tk208.17 crore, investors will be able to acquire the bond at a discount rate ranging from 11-12%.
Community Bank Investment Limited will serve as the trustee for the bond, while City Bank Capital Resources Limited will act as the arranger. Additionally, the bond will be listed on the Alternative Trading Board of the Dhaka Stock Exchange.
According to the company’s website, Rancon Motor Bikes commenced operations in 2012. A joint venture between Suzuki and Rancon led to the establishment of a factory in Gazipur for local manufacturing of Suzuki bikes, with production commencing in 2018.
Paramount Textile to raise Tk250 crore
In addition, the Bangladesh Securities and Exchange Commission (BSEC) has granted permission for Paramount Textile to raise Tk250 crore by issuing an unsecured zero-coupon bond, with a discount rate ranging from 9-12%.
The textile manufacturer intends to utilize the bond proceeds for expanding its business operations. Sena Kalyan Insurance Company Limited will act as the trustee for the bond, with NDB Capital Limited serving as the arranger. The bond will be listed on the Alternative Trading Board.
At the Dhaka Stock Exchange, Paramount Textile’s shares closed at Tk69.60 each on Thursday, marking a 2.96% increase from the previous session.
For the fiscal year 2022-23, Paramount Textile distributed a 10% cash dividend to its shareholders. The company reported a net profit of Tk122 crore during the last fiscal year, with earnings per share of Tk7.51.
Read more: Rancon Motor Bikes Ltd. gets nod for Tk150cr bond
However, in the July-December period of fiscal year 2024, its earnings per share declined by 23% to Tk3.06 compared to the same period in the previous year. According to the company’s financial statement, this decrease in earnings per share can be attributed to the failure to meet export targets due to the ongoing global economic crisis.
