The Bangladesh Finance and Investment Company is going to issue its first zero-coupon bond worth Tk 200 crore to expand its business and ensure diversification of funding sources.

The listed non-bank financial institution decided to launch the bond after taking approval from the authorities concerned.

A zero-coupon 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 redeemed for its full face value.

The bond would be non-convertible, fully redeemable and unsecured, each with a denomination of Tk 10 lakh.

The tenure of the bond is three years, with a discontinuing rate of 7 to 7.5 per cent per annum. The bond’s lead arranger is City Bank Capital Resources while Sandhani Life Insurance as the trustee.

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