City Group plans to raise up to Tk 1,500 crore from Bangladesh’s capital market, marking the conglomerate’s planned entry into the country’s equity market for the first time.

The company expects to complete the proposed fundraising within the next 12 to 18 months, subject to applicable laws, regulatory approvals and prevailing market conditions.

A related agreement was signed at City Group’s corporate headquarters on Thursday.

The group has chosen the capital market as a sustainable source of financing alongside other funding options to support its future growth and financing needs. The initiative is also expected to create new investment opportunities by increasing the number of issuers in the market and encourage other corporate entities to consider the capital market as an alternative source of funding.

LankaBangla Investments PLC has been appointed as the issue manager for the proposed fundraising.

The transaction may involve an initial public offering (IPO), private equity, preference shares, corporate bonds, sukuk or any other capital market instrument approved by the regulators.

LankaBangla Investments will lead the issue management and related capital market activities, subject to all applicable regulations and necessary regulatory approvals.

The initiative aims to develop an appropriate financing structure by combining the expertise and experience of the two organisations.

ONE Bank PLC will work with LankaBangla Investments as the banking partner and banker to the issue, providing the required banking services and infrastructure for the proposed transaction.

City Group Managing Director Md Hasan, sponsor shareholders and directors Farzana Rahman and Shampa Rahman, LankaBangla Investments Director and LankaBangla Securities Managing Director Mohammad Nasir Uddin Chowdhury, and ONE Bank Managing Director Muhit Rahman, among others, were present at the signing ceremony.