The board of directors of Uttara Finance and Investment Ltd will issue non-convertible zero coupon bonds through private placement at a discounted issue price of more than Tk 3.73 billion.
Total face value of the bond is Tk 5.0 billion, maturity period five years from issue date, denomination of each bond is indicated Tk 5.0 lac and the indicative discount rate is 10.50 per cent, said an official disclosure on Tuesday.
Purpose of issuance of the bond is for expansion of existing lending business, diversification of funding sources, bond market development etc. The issuing of bonds is subject to the approval of the regulatory authorities — Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), the disclosure added further.
Each share of the non-bank financial institution, which was listed on the Dhaka Stock Exchange (DSE) in 1997, closed at Tk 53.90 on Monday.
In nine months, its EPS was Tk 8.33 for January-September, 2019 as against Tk 8.04 for January-September, 2018.
The company disbursed 20 per cent cash dividend for the year ended on December 31, 2018.
The financial institution’s paid-up capital is Tk 1.25 billion and authorised capital is Tk 5.0 billion, while the number of securities is 125.22 million.
The sponsor-directors own 48.34 per cent stake in the company, while institutional investors own 34.96 per cent, foreign 3.91 per cent, and the general public 12.78 per cent as on November 30, 2019.