Envoy Textiles Limited plans to issue zero-coupon bonds to increase around Tk 1.68 billion for funding its captive power plant project and pre-pay a portion of the high-cost loan.
Envoy Textiles Limited recently declared the issuance of the bonds through private placement in a posting on the Dhaka Stock Exchange website.
Envoy Textiles board of directors decided to issue the 5-year series zero-coupon bonds with a par value of Tk 2 billion but at a reduced value of Tk 1.68 billion.
A zero-coupon bond – also known as an accrual bond – is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is exchanged for its full-face value.
Envoy Textiles has also decided to purchase a commercial space to use as an extended corporate office at a cost of around Tk 80 million.
