RFL uPVC door maker allowed collecting Tk300cr through Sukuk | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Wednesday
November 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
WEDNESDAY, NOVEMBER 29, 2023
RFL uPVC door maker allowed collecting Tk300cr through Sukuk

Stocks

TBS Report
28 September, 2022, 10:05 pm
Last modified: 28 September, 2022, 11:01 pm

Related News

  • DSE turnover falls below Tk300cr after three months
  • SS Steel to acquire fixed assets of two other steel firms
  • Stocks plunge on fear of political tensions
  • DSE demotes two officers nine months after promotion
  • Oil drops further after OPEC delay as Asian stocks struggle

RFL uPVC door maker allowed collecting Tk300cr through Sukuk

TBS Report
28 September, 2022, 10:05 pm
Last modified: 28 September, 2022, 11:01 pm
RFL uPVC door maker allowed collecting Tk300cr through Sukuk

Banga Building Material Ltd (BBML) – the maker of RFL uPVC doors, sheets, ceiling panels, and furniture – has received the securities regulator's nod to raise Tk300 crore through Sukuk for capacity expansion at its Habiganj Industrial Park unit.

This is going to be the second corporate Sukuk, after the Tk3,000 crore Beximco Green Sukuk which was issued last year.

On Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) in a statement said only banks can invest in the Sukuk – an asset-backed Islamic instrument.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Unlike Beximco Sukuk, BBML Sukuk will be non-convertible and fully redeemable.

Of the six-year tenure, the first year will be a grace period when the company will not pay any sum to investors.

Investors' annual rate of return will be at least 8% and will not exceed 11% as the return would be 300 basis points higher than the floating Islamic deposit rate in the banking industry.

BBML, as the originator or user of the funds, will pay the profits twice a year, except for the first year and give the principal back after maturity.

The trustee First Security Islami Capital and Investment Ltd will bridge between the investors and BBML.

Following the successful advisory and issuance services to Beximco Sukuk, local investment bank City Bank Capital Resources Ltd is working as the issue advisor and arranger of the BBML Sukuk.

Of the Tk300 crore proceeds, Tk160 crore would be used to refinance BBML's existing machinery to help it save some in finance costs, while the remaining amount would be used to purchase new machinery.

The face value of each unit of the Sukuk, to be privately placed instead of a public offer, will be Tk5,000 and a lot will have 20 units. That means, a bank must subscribe for Tk1,00,000 Sukuk.

The Sukuk units will be traded on the alternative trading board of the Dhaka Stock Exchange (DSE).

How Sukuk works

Unlike bonds that offer debts to businesses, Sukuk is a project financing instrument which is offered to investors against specific underlying assets.

The investors earn rental income over a predetermined period against the assets they helped purchase.

A trustee remains the bridge between investors and the company.

The company, which uses the assets and pays investors back, is called the originator of the Sukuk, while the trustee is the legal issuer.

After the end of the instrument's tenure, the originator buys the assets and returns the capital to the investors.

Since Sukuk does not directly offer interest income, the instrument is a Shariah-compliant one and is gaining popularity among the world's Muslim investors.

The financial cost of a Sukuk is usually less than what commercial banks charge for loans.

RFL / PVC / stocks

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Despite some positives like, changes in wordings the major things workers demand have not been reflected in the amendments. Photo: TBS
    Washington embassy tells commerce ministry to prioritise US labour policy, warns it could hurt apparel sector
  • Photo: Mohammad Minhaj Uddin
    Bangabandhu Tunnel: Tk4.11 crore in toll collected in first month
  • Taka appreciated officially, market reacts quite opposite
    Taka appreciated officially, market reacts quite opposite

MOST VIEWED

  • Tax return time extension likely
    Tax return time extension likely
  •  File photo of a North Korean flag. REUTERS
    North Korea shuts down its embassy in Bangladesh
  • 12 expressways outlined for wider connectivity by 2041
    12 expressways outlined for wider connectivity by 2041
  • Photo: TBS
    Ctg city enters ‘Smart School Bus’ era
  • The architectural design of Anukrom is a triumph of purpose and ingenuity – a rectangular structure that stretches east to west, crafting out two courtyards. Photo: Shakil Hai
    Anukrom: A mother’s dream, a son’s guilt and an award-winning home
  • Bajaj Pulsar 250cc. Photo: Bajaj's official website
    Bajaj Pulsar N250: First higher cc motorcycle launched at Tk3.4 lakh

Related News

  • DSE turnover falls below Tk300cr after three months
  • SS Steel to acquire fixed assets of two other steel firms
  • Stocks plunge on fear of political tensions
  • DSE demotes two officers nine months after promotion
  • Oil drops further after OPEC delay as Asian stocks struggle

Features

Disadvantaged groups are more exposed to climate effects and less able to recover from damages. A Bangladeshi family travels to a safer location as water enters new areas after the cyclone Aila hit Bangladesh in 2009. Photo: Abir Abdullah

Climate and inequality entwinement imperils us all

5h | Panorama
A lesson on living the moment: 20 years of Kal Ho Naa Ho

A lesson on living the moment: 20 years of Kal Ho Naa Ho

21h | Features
In Barishal’s case, the low-cost of travel via waterways encourages people to migrate to Dhaka and other cities, like Chattogram. Photo: Syed Zakir Hossain

Why nearly a-fifth of people from Barishal moved to Dhaka

22h | Panorama
Photo: Salahuddin Ahmed/TBS

Political unrest hampers admission prep for HSC 2023 intake

23h | Education

More Videos from TBS

The fight is Awami League vs Awami League

The fight is Awami League vs Awami League

8m | TBS Stories
The reason for the disaster is the glossy image of the social media

The reason for the disaster is the glossy image of the social media

2h | Tech Talk
China investigates major shadow bank for 'crimes'

China investigates major shadow bank for 'crimes'

2h | TBS Economy
Pakistan may lose its opportunity to host the Champions Trophy in 2025

Pakistan may lose its opportunity to host the Champions Trophy in 2025

16h | TBS SPORTS
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net