Alif Industries to raise Tk 300 crore through convertible bonds – The Daily Star

Alif Industries, a listed textile company, has decided to raise a fund of Tk 300 crore by issuing convertible bonds in order to purchase land, machinery and retrofitting existing factory.

The bond will be issued after taking approval from the stock market regulator and shareholders of the company, Alif Industries said today in a disclosure on the website of the Dhaka Stock Exchange (DSE).

Face value of each bond would be Tk 1 lakh and tenure of the bond is six years.

The bond’s yield is 7 per cent base profit and 10 per cent of total dividend — be it cash or stock dividend, according to the disclosure.

The interest amount will be disbursed semiannually.

Interest amount of the said bond is fully secured by bank guarantee, the company said.

Moreover, the principle amount is also fully secured since the entire principle amount will be converted to AIL shares at a discounted price to the market, it added.