Multinational holding company Bangladesh Export Import Company, widely known as BEXIMCO and a conglomerate in the business of textile, real estate, food and commodities and information and communications technology, among others, has announced the completion of projects financed by its debut Sukuk.
In a series of filings on the Dhaka Stock Exchange, the company said that Teesta Solar’s 200 MW (AC) Solar PV Power Plant in Sundargani, Gaibandha, which utilized BDT18.82 billion (US$169.76 million) from the Sukuk facility’s proceeds, successfully started commercial operations on the 8th January 2023.
An amount of BDT8.06 billion (US$72.7 million) was also allocated to the expansion of BEXIMCO’s textile division, which has commissioned textile machineries through financing and refinancing facilities. “It has enhanced Textile Division’s capacity in spinning, denim, yarnd dyeing, knitting, printing and washing units,” said the company.
With the completion of the two projects, around BDT26.88 billion (US$242.46 million) of the Sukuk funds has been successfully utilized, and the assets thereof have started generating revenue, BEXIMCO noted.
A third project – Korotoa Solar’s 30 MW (AC) Solar Project in Tetulia, Panchagarh – is currently under construction, and is expected to be fully operational by June 2024.
BEXIMCO had issued its debut Islamic paper and the country’s first-ever green Sukuk, structured under the concept of Istisna, in 2021. The offering helped the company raise BDT30 billion (US$270.6 million) from an investor pool made up mainly of Bangladeshi banks.
The green Sukuk Istisna, which carries a five-year tenor and a coupon rate of 9% plus profit margin rate, is listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange.