BB Seeks Extension of Beximco Sukuk Maturity

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BB Seeks Extension of Beximco Sukuk Maturity

Investors are becoming increasingly apprehensive about Beximco’s Tk 3,000 crore green sukuk with just over a year remaining. Concerns have been raised regarding the return of the funds. In this regard, efforts are being made by Bangladesh Bank, BSEC, and trustee ICB to increase the sukuk’s maturity.

Launched in 2021, this Sharia-compliant bond will mature in December 2026. The ICB has already established a 21-member working group and a 10-member committee headed by the central bank’s deputy governor. Based on the views of the investors and trustees, a decision regarding the reorganization of the terms and conditions will be made.

With almost Tk 250 crore deposited, the sinking fund has become the primary hope for investors. The Teesta Solar project is already generating Tk 50 crore a month, and it might generate an additional Tk 8–10 crore if the Karatoya project is launched. The Karatoya project is still proceeding, though, and it will take an additional Tk 10–12 crore to repair some of the machinery that was destroyed during the previous agitation.
In the meanwhile, investors are less interested in Sukuk even though it is convertible. Because Beximco’s financial problems and the shutdown of some of its factories have made the company’s share conversion less appealing. Beximco Limited lost Tk 356 crore, or Tk 3.78 per share, in the first half of the fiscal year 2024–25.

Currently, 5,600 investors and at least 20 banks and financial organizations bear the largest risk of investment return; some of these investors have made a single investment of Tk 200–300 crore. The banks might have to make significant provisioning if payment is not received.

However, the concerned quarters believe that the Sukuk calamity can be avoided if the time is prolonged, the terms are modified, and project revenue is guaranteed.

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