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ISSUANCE OF BONDS/ DEBENTURES/ PREFERENCE SHARES/ SECURITIES DEBT PRODUCTS/ SUKUK

Private or public companies planning to issue Bond/ Debentures on a private placement basis or through public issuance could contact for help and benefit from our research and experience.

One of board of directors was directly involved/ worked as a consultant to a major World Bank project (FIDP) to promote bond market development in Bangladesh. During his tenure, the project helped Bangladeshi finance companies to issue bonds, debentures and first securitized bonds.

WHY ISSUE BONDS

  1. It is a fixed/ floating rated instrument which attracts small savers.
  2. It helps corporate stay away from traditional bank finance.
  3. Banks /FIs can issue subordinated bond issues to improve their equity capital situation.
  4. Ample Income tax benefit is there for both issuer and investor.
  5. More easily salable instrument to small savers due to attractive fixed nature of returns.
  6. When equity market is in recession, bond helps to raise capital easily from the market place..
  7. It is easy to place it privately which allows companies to get immediate funding without going through cumbersome IPO process.

COSTS & EXPENSES FOR BOND ISSUANCE

The likely costs and expenses for Bond/Debenture issuance in the market place could be enumerated below.

  1. Issue Manager Fee.
  2. BSEC fees (application + consent fee).
  3. CDBL fees and expenses.
  4. Underwriting commission.
  5. Bankers to the Issue commission.
  6. Credit Rating fee (if shares issued at premium).
  7. Stock Exchange listing fee.
  8. Post Issue management expenses.
  9. Capital Raising fee.
  10. Private Placement commission.
  11. Miscellaneous expenses.

For numerical details of those fees and expenses and to get a customized fee chart based on your issue size, Please ask/call our IPO department.

WHY ISSUE PREFERENCE SHARES?

  1. This is a quasi equity instrument which prevent companies dilute their basic equity.
  2. Low at source tax deduction helps small saves to buy preference shares.
  3. Most of the Portion can be privately placed.
  4. Banks and large corporate are the major buyers.
  5. Redeemable Preference shares treated like any other debt instruments and can be deductible as interest expense before profit calculation.
  6. Irredeemable Preference share improves the regulatory capital requirement of the company.

For numerical details of those fees and expenses and to get a customized fee chart based on your issue size, Please ask/call our IPO department.

SUBORDINATED BOND ISSUE FOR BANKS/FIS:

We can help any banks or FIs to issue Subordinated Bond instrument to improve their equity situation in the market place.

DETAIL PROCEDURE TO ISSUE BONDS/PREFERENCE SHARE:

Please talk to NRBEML bond team members/Issue Management team for further details.