Premier Cement Mills PLC, one of the country’s leading cement manufacturers, has submitted a fresh application to the Bangladesh Securities and Exchange Commission (BSEC) seeking approval to raise Tk161 crore through the issuance of preference shares.

The company had earlier unveiled this fundraising plan in November last year but was denied permission by the commission in June 2025 due to the absence of necessary provisions in its Memorandum of Association. The reapplication aims to secure funds from high-net-worth individuals, commercial banks, and other institutional investors to repay high-cost bank loans.

Company Secretary Kazi Md Shafiqur Rahman confirmed the reapplication and explained that rising interest rates on existing loans have prompted the move. Premier Cement, an A-category listed firm known for consistent dividend payouts, plans to issue 322 non-convertible, non-participating, cumulative preference shares at Tk50 lakh each, with a five-year tenure and semi-annual dividends. The dividend rate may be reviewed at various intervals, depending on prevailing market conditions.

In response to the application, the BSEC has requested an opinion from the Dhaka Stock Exchange (DSE), directing the bourse to respond within 15 working days. According to previous disclosures, eligible investors include scheduled commercial banks (excluding fully shariah-based banks), NBFIs, corporates, directors and sponsors, and other institutions.

Premier Cement’s financial performance has been under pressure, with a 12.59% year-on-year revenue decline and an 87% drop in net profit in the first nine months of FY2024–25. From July to March, revenue fell to Tk1,785.9 crore and net profit dropped to Tk7.16 crore, largely due to surging finance costs, which rose to Tk145 crore from Tk108 crore a year earlier. As of March 2025, the company held Tk52 crore in long-term loans and Tk1,613 crore in short-term borrowings, alongside Tk24 crore owed to directors.

This is not the company’s first attempt to raise funds through preference shares. In 2019, Premier Cement aimed to raise Tk310 crore but managed to secure only Tk151 crore. The current effort is a renewed attempt to reduce debt pressure and restructure its balance sheet amid a high-interest rate environment.