The board of directors of IDLC Finance Ltd has approved the issuance of a Tk500 crore zero-coupon bond for a tenure of two years.
The nature of the bond is unsecured and non-convertible, stated the company disclosure on the Dhaka Stock Exchange (DSE) website on Tuesday.
Now, the bond issuance is subject to approval of the regulatory authorities – the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC).
A zero-coupon bond is simply a discount bond which is originally sold at a discount from its face value instead of periodic dividend payments or interests. Face value is the amount paid to the bondholders at maturity.
IDLC Finance reported a consolidated net profit of Tk91.87 crore during the first half of this year, which was 11% lower compared to the same period of the previous year.
The non-bank financial institution, in its financial disclosure, said the decrease in net profit was due to declines in investment income and income from commission, exchange, and brokerage.
In the first half of 2022, the company's consolidated earnings per share (EPS) stood at Tk2.21 and consolidated net asset value (NAV) per share was Tk41.17.
Last year, its net profit was Tk211.60 crore and EPS was Tk5.34.
IDLC Finance paid 15% cash and 5% stock dividends to its shareholders for financial year 2020.
The company listed with the DSE in 1992. Its paid-up capital is Tk415.69 crore.
Of the total shares of IDLC Finance, sponsors and directors jointly own 56.66%, institutional investors 26.62%, foreign investors 2.40%, and general investors 14.32%.
The closing price of each company share was Tk49.90 on Tuesday at the DSE.