Nagad, the Bangladesh Post Office’s mobile financial services branch, has received final approval from the Bangladesh Securities and Exchange Commission (BSEC) to generate Taka 510 crore through a zero-coupon bond to develop business, extend services, and repay debts.
According to sources acquainted with the case, the company received this authority to offer bonds only to corporations and other qualifying investors via private placement.
Nagad Limited is projected to become a lucrative corporation in this manner, according to the officials involved.
Talking about it with BSS, Muhammad Zahidul Islam, head of public communications, Nagad, said, “The number of customers boarded by Nagad, the world’s fastest expanding mobile financial service, has surpassed 7 crore. To serve such a huge customer base in a better way considering future needs, the money raised through the bond will be spent on building digital infrastructure, developing networks, repaying current debts and procuring IT equipment, also on marketing and promotional activities.”
As a result, Nagad would endeavor to create a new horizon for clients, encouraging them to embrace cashless transactions and thereby reduce the use of cash, he added.
This would be a five-year transferable, redeemable, non-convertible zero-coupon bond. The coupon rate could rise to 10%. The corporation anticipates that the money raised through the bond will generate profits within the following five years.
Nagad has developed a grip in the MFS sector since its start on March 26, 2019, thanks to its one after another innovative improvements. The organization has also ensured that the financial industry is digitalized.
Nagad’s daily transactions now average Taka 1,200 crore as it provides clients with economical services.
It should be noted that on May 17, the Bangladesh Bank issued a circular approving a new non-bank financial company called “Nagad Finance PLC.”