The Financial Express

Ashuganj Power bond: Subscription allowed till November 18

| Updated: October 21, 2019 11:03:36

Lankabangla and Fianancial Express Lankabangla and Fianancial Express
Ashuganj Power bond: BSEC extends timeframe for subscription

The securities regulator has extended the timeframe for public subscription of the bond to be issued by Ashuganj Power Station Company (APSC) till November 18 next.

The subscription period has been extended as the public subscription was not completed within the stipulated timeframe fixed previously.

As per the regulatory approval, the APSC will raise a capital worth Tk 1.0 billion to conduct different development works including the land development.

The company will raise the capital by issuing bond through initial public offering (IPO).

Asked, Mohammad Abul Mansur, company secretary at APSC, said they will have to complete the subscription of the units worth Tk 650 million.

"The units worth Tk 350 million have already been completed. To complete the subscription of the remaining portion, the regulator waived the APSC from the investment ceiling set for individual and institutional investors," Mr. Mansur said.

He said an investor is allowed to submit multiple applications for the bond of the APSC.

"But the existing system of the brokerage firms did not allow multiple applications. That's why, the subscription of the company's bond was not completed within previous timeframe," Mansur said.

After listing, the bond of the APSC will be traded like the perpetual bonds listed on the Dhaka Stock Exchange.

The characteristics of the bond of the APSC will be non-convertible, fully redeemable and coupon bearing with a face value of Tk 5000 per unit. The tenure of the bond will be seven years.

The APSC will raise the capital to bear the costs of land development, civil works, initial fuel, engineering and consultant service, and the purchase of vehicles.

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