Dhaka, Bangladesh (BBN) – The board of directors of LankaBangla Finance has recommended issuance of rights shares and second non-convertible zero coupon bond, said an official disclosure on Wednesday.

The board has recommended issuance of rights shares at the rate of 2:1 (i.e. one rights share for every two shares) at an issue price of BDT 10 per share subject to approval of shareholders and regulatory authorities – Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC), said the disclosure.

The final approval will come during the extraordinary general meeting (EGM) scheduled to be held on December 14 at 11am.

The record date for EGM is on November 17 and the venue will be notified later. Another record date for entitlement of the proposed rights shares to be notified later after obtaining approval from BSEC.

The board has also approved issuance of second non-convertible zero coupon bond of BDT 5.0 billion to fetch long term lending and diversification of existing funding sources of the company.

The issuance of second non-convertible zero coupon bond also subject to the approval of the regulatory authorities – Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC)

Each share of LankaBangla Finance, which was listed on the Dhaka bourse in 2006, closed at BDT 31 on Tuesday.

The sponsor-directors own 37.48 percent stake in the LankaBangla Finance, while institutional investors own 33.23 percent, foreign investors 2.44 percent and the general public 26.85 percent.

The company’s paid-up capital is BDT 2,767.4 million and authorised capital is BDT 3,000 million while total number of securities is 276,739,949, according to statistics from the DSE.

BBN/AD/SR