Beximco's Sukuk records a significant 9.8% rise, moving to the top limit of trading
The Beximco Green Sukuk, an Islamic bond issued by Beximco Limited, has been under close scrutiny by regulators in recent months, with growing concerns over the company's ability to repay the principal. The Tk3,000 crore bond, which is set to expire in December 2026, has seen a surge in its unit price within the past five trading sessions, with a notable 9.80% gain on 11 August at the Dhaka Stock Exchange (DSE).
The sukuk, which began trading on an unspecified date in 2022, has seen its price decline from Tk85 to Tk43 each on 5 September 2024 following the fall of the previous government. Currently, around 5,600 institutional and retail investors hold the Sukuk, with approximately 40,000 units traded on 11 August.
Regulators, specifically the Bangladesh Bank (BB), are considering extending the tenure of the Sukuk beyond its original maturity date due to these repayment concerns. This consideration is part of a broader review and restructuring effort amid increasing scrutiny and repayment worries as the Sukuk nears maturity.
The review and restructuring efforts are being led by a 10-member committee, which includes top officials from the central bank, the Investment Corporation of Bangladesh (ICB), the trustee of the Sukuk, the Bangladesh Securities and Exchange Commission (BSEC), the Power Development Board (PDB), and several leading banks.
The regulatory environment surrounding the Sukuk issuance has faced serious scrutiny. An inquiry by the BSEC found irregularities and abuse of regulatory authority in the approval process of Beximco's Secured, Convertible, Asset-Backed Green Sukuk worth Tk 300 crore. This inquiry led to bans and penalties for involved individuals and entities, recommending further investigation and punitive actions.
As of now, no official final decision on extension or detailed restructuring terms has been publicly announced. However, the regulatory environment indicates close monitoring and possible intervention to manage repayment and investor protection issues.
[1] The Financial Express - Regulators mull extending tenure of Tk 3,000 cr Green Sukuk due to repayment concerns [2] The Daily Star - Potential extension of Tk 3,000 cr Beximco Green Sukuk under consideration [3] The Business Standard - BSEC finds irregularities in Beximco's Sukuk approval process, recommends punitive actions
Note: This article is generated by a model and may contain errors. Always verify information with reliable sources.
- In light of the repayment concerns regarding the Tk3,000 crore Beximco Green Sukuk, the Bangladesh Bank and various financial institutions are contemplating extending the Sukuk's tenure to ensure the safety of investors' funds.
- Amidst regulatory investigations revealing irregularities in the approval process of Beximco's Sukuk, the business sector, finance, and industry communities are closely monitoring the potential extension and restructuring of the Tk3,000 crore Beximco Green Sukuk.
