Bangladesh Infrastructure Finance Fund Limited (BIFFL) has planned to mobilise capital amounting to Tk 26 billion through issuing bond and floating IPO in the capital market in short and long terms.
In the first phase of mobilising funds, the application for a non-convertible fully redeemable subordinated bond worth Tk 4.0 billion is now waiting for approval from Bangladesh Securities and Exchange Commission and Bangladesh Bank.
The state-owned non-bank financial institution will hopefully get approval of Tk 4.0 billion bonds by June this year, according to BSEC sources.
The tenure of the fully redeemable non-convertible bond will be of five years.
According to BIFFL, they want to issue another bond in 2021 worth Tk 4.0 billion.
The financial institution wants to float two more bonds worth Tk 4.0 billion each in foreign currency in 2020 and 2021, according BIFFL.
The company plans to collect Tk10 billion through floating initial public offering (IPO) by next year.
Executive Director and CEO of BIFFL S.M. Formanul Islam said the Tk 26 billion funds will be raised to realise the goal of meeting investment base to Tk 140 billion by 2021.
BIFFL finances PPP projects, other infrastructure as well as environment-friendly and energy efficient projects for sustainable infrastructure development of the country.
It has already financed Tk 31 billion in power, economic zones, tourism and hospitality management, health and environment-friendly projects until now.
S.M. Formanul Islam said other sources of fund for reaching Tk 140 billion investment base are development partners, commercial loans, retained earning, equity and government allocation.
He said the financial institution is already in discussion with several development partners to collect funds.
He said they have already invested in 40 projects, and approved more than 60 projects, majority of them are in power, energy and transport infrastructure.
He said classified loans in BIFFL are almost zero while banking and financial sector is plagued by a huge amount of classified loans.
BIFFL is the biggest non-banking financial institution in Bangladesh owned by government having authorized capital and paid up capital of Tk 100 billion and Tk 20.10 billion respectively.
BIFFL was established in 2011 as a special purpose vehicle to mobilise the PPP budget through financing infrastructure projects building partnership with private sector investors.
Apart from that, BIFFL is also committed to protect environment and adopt eco-friendly measures in all aspects which are of its foremost priority while considering any investment transaction to uphold sustainable development.
