Paramount Textile PLC announced its intention to raise Tk 2.5 billion by issuing a special type of bond.
This bond, known as a zero-coupon bond, doesn’t pay interest upfront but gains profit upon maturity.
The Bangladesh Securities and Exchange Commission gave the green light to this fundraising during a recent meeting in Dhaka.
The bond, with a discount rate between 9 to 12%, will be offered through private placement to institutional and high-net-worth investors. Each bond unit will have a face value of Tk 1 million.
The funds generated will serve multiple purposes for Paramount Textile PLC. They plan to use it to settle existing bank loans and to expand their business operations.