Listed non-bank financial institution IPDC Finance Limited has decided to issue bonds worth Tk 400 crore to meet its financing requirements and strengthen its capital adequacy position.

The proposed issuance will comprise an unsecured subordinated bond worth Tk 200 crore and a green zero-coupon bond worth another Tk 200 crore.

The decision was approved at a meeting of the company’s board of directors held on October 29, according to information disclosed to the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

The company plans to issue the bonds through private placement.

According to the disclosure, the non-convertible subordinated bond will have a tenure of six years and qualify as Tier-II capital. The green zero-coupon bond will have a maturity period of five years.

However, the proposed bond issuance will require approval from Bangladesh Bank, the Bangladesh Securities and Exchange Commission (BSEC) and other relevant regulatory authorities.

In a separate decision at the same board meeting, IPDC Finance approved plans to hold its 16th extraordinary general meeting (EGM) on December 15 at 9:00am through a virtual platform.

November 19 has been set as the record date to determine shareholders eligible to participate in the meeting.

The proposed agenda includes adding new clauses to the company’s memorandum and articles of association and revising existing provisions relating to quorum. The proposed amendments will require approval from shareholders and the relevant regulatory authorities.