Ashuganj Power first state firm to release bonds through IPO

Ashuganj Power Station Company Limited has become the first state-run firm to get approval to raise Tk 1 billion from the stock market by releasing bonds through IPO.

Bangladesh Securities and Exchange Commission or BSEC gave the go-ahead in a meeting on Tuesday, the regulators said in a media release.

The bonds will be non-convertible, fully redeemable, and coupon bearing, according to the release.

Each of the 200,000 bonds with a seven-year term will cost Tk 5,000.

The annual interests from the bonds will be minimum 8.5 percent and maximum 10.5 percent, payable every six months.

Ashuganj Power will spend the money on land development, civil work, primary fuel, purchase of transport, engineering and consultation services, current capital, and IPO. 

DSE Brokers Association of Bangladesh President Shakil Rizvi has welcomed the news of the bonds from the state firm.

“It will increase the depth of our share market,” he said.

Ashuganj Power, the largest power plant of Bangladesh with a capacity to generate 1,690 megawatt, had its net asset value per share or NAVPS Tk 265.96 in the year until June 30, 2017.

Its earning per share or EPS in five years was Tk 10.63.  

ICB Capital Management and BRAC EPL Investment are in charge of issuing the bonds.