Paramount Textile to raise Tk 2.5b through zero-coupon bonds

Paramount Textile to raise Tk 2.5b through zero-coupon bonds
Paramount Textile Ltd. (PTL) will raise Tk 2.5 billion through issuing zero-coupon bonds to pay off its existing liabilities and fund the expansion of the company's business.

The company's board of directors has taken this decision to be implemented subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC), according to a filing with the Dhaka Stock Exchange.

The nature of the bond will be non-convertible, transferable, fully redeemable and unsecured.

Md. Robiul Islam, company secretary of the PTL, said a portion of the fund will be used to pay off short-term loans taken at a high interest rate.

The Board of Directors has also decided to convert a portion of its investment of Tk 910 million in Intraco Solar Power Ltd. (ISPL), a sister concern of the PTL, into non-convertible non-redeemable preference shares of Tk 10 each within five years.

The PTL's remaining investment of Tk 632.79 million in the ISPL will also be converted into non-convertible redeemable preference shares within five years.

The company will receive interest at a rate of 9.0 per cent from its both portions of the investments in the ISPL until completion of the conversion of investments.

The PTL, presently an 'A' category company, was listed on the stock exchanges in 2013.

The company's sponsor-directors hold 60.95 per cent stakes, institutes 9.30 per cent, foreigners 4.22 per cent and general shareholders 25.53 per cent as on November 30, 2022.

The company's share has remained stuck to the floor at Tk 77 since September 13 on the Dhaka Stock Exchange (DSE).

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