Renata PLC, one of Bangladesh’s leading pharmaceutical companies, has secured Tk 536 crore through the issuance of zero-coupon bonds and preference shares as part of a debt restructuring initiative to reduce borrowing costs.
The milestone was celebrated at Renaissance Dhaka Gulshan Hotel at an event jointly organized by Renata and its sole financial advisor, City Bank Capital Resources. The gathering included top officials from private commercial banks and corporate leaders as the company shared details of its financial transformation journey.
The restructuring focuses on replacing high-cost borrowings with lower-cost fixed-rate securities, including fully redeemable preference shares, zero-coupon bonds, and fixed-rate term loans. “This initiative mitigates liquidity and interest rate risks by converting short-term debt into long-term, low-cost financing,” said City Bank Capital’s CEO, Ershad Hossain.
As part of its strategy, Renata has proposed issuing additional preference shares worth Tk 3.25 billion to repay high-cost loans. The issuance, subject to shareholder and regulatory approval, will feature non-cumulative, non-participative, redeemable, or fully convertible shares.
“This move aims to strengthen Renata’s balance sheet, optimize its debt-equity ratio, and ensure long-term financial sustainability,” said Mustafa Alim Aolad, Chief Financial Officer of Renata PLC. “This capital restructuring plan is vital to financial resilience and positioning us for future opportunities.”
Key industry leaders attended the event, including Aziz Al Kaiser, Chairman of City Bank PLC; Romo Rouf Chowdhury, Chairman of Bank Asia; and Aziz Al Mahmood, Chairman of City Bank Capital Resources Limited.
Managing directors from prominent financial institutions, including Brac Bank, Eastern Bank PLC, City Bank, Bank Asia, Pubali Bank, Dhaka Bank, Prime Bank, One Bank, IDLC, and IPDC, participated in the event.
