A working committee formed under the directives of Bangladesh Bank has recommended extending the maturity of Beximco Ltd’s Shariah-compliant green Sukuk by six years. The company has informed that it will be unable to repay investors’ principal when the bond matures in December 2026.
The 21-member committee, led by the Investment Corporation of Bangladesh (ICB), has proposed a new maturity date of 2032 for the Tk3,000-crore instrument. Beximco is currently under financial strain, two of the three Sukuk-funded projects are delayed, and the company has failed to convert Sukuk units into shares as originally planned.
Under the original arrangement, up to 20% of the Sukuk was to be converted into Beximco shares annually over five years. Between 2022 and 2024, Tk1,800 crore was scheduled for conversion, but only Tk190 crore — 6.36% — has been converted, leaving an outstanding principal of Tk2,809 crore. Investors avoided conversion due to the Sukuk’s 9% semi-annual return.
A senior Beximco official stated that in light of setbacks after 5 August 2024, repaying the principal by 2026 is impossible. However, a six-year extension could make full repayment feasible.
The Sukuk financed two solar projects — Teesta and Korotoa — and the textile expansion project. Teesta Solar Park, operational since January 2023, has generated Tk1,693.31 crore up to October 2025. Korotoa Solar Park remains inactive and requires Tk150 crore to restart. The textile unit is partially operational due to raw material supply issues.
The committee recommended that if Korotoa is revived, the extension could be limited to five years. It also advised keeping the 9% semi-annual profit unchanged, granting the SPV power of attorney over project lands and the six-storey textile building, and increasing the sinking fund.
AJ