To amplify its expeditiously, say-owned ocean-going vessel administration authority Bangladesh Transport Corporation (BSC) raised over Tk313.70 crore via a repeat public offering (RPO) from the capital market support in 2011.
So far, 70% of the general public fund remains unutilised as its preliminary idea used to be scrapped, in accordance with its most up-to-date reviews.
The corporate has raised the funds floating 62.74 lakh abnormal shares of Tk100 at a proposal imprint of Tk500 each and every, including Tk400 as top price.
Now, the Transport Corporation plans to utilise these funds in its upcoming vessel possess venture within one or two years with a reason of expanding its expeditiously on rising query internationally.
In October, the corporate made up our minds to speculate round Tk700 to Tk800 crore to procure two vessels at its enjoy payment.
The procurement, being financed entirely by the corporate, marks essentially the well-known time in its historical previous as its financial deplorable has been bolstered by wholesome profits in most up-to-date years.
The surge in earnings and profits used to be pushed by an amplify in freight rates for ships working on international routes, following the Covid-19 pandemic and the Russia-Ukraine war, as correctly as a upward thrust within the value of the buck.
Before the pandemic, in fiscal year 2019-2020, the corporate’s gain income used to be Tk41 crore.
Since then, its income has grown vastly in subsequent fiscal years. In FY24, its income reached a file excessive.
Established in 1972, steady months after the country’s independence, the corporate closing fiscal year logged a income of Tk250 crore for essentially the well-known time in its 52-year historical previous.
Commodore Mahmudul Malek, managing director of the Transport Corporation, if truth be told helpful TBS, “With the approval of shareholders on the upcoming annual frequent meeting (AGM), along with a two-year time extension except June 2026, we idea to spend the funds for procuring vessels.”
What used to be the preliminary idea for the raised funds?
In accordance to its preliminary idea outlined within the prospectus, the corporate supposed to spend the raised funds to procure a second-hand (round 10 years weak) 100,000–125,000 DWT (deadweight tonnage) mother tanker, and a second-hand (no longer extra than 10 years weak) 30,000–35,000 DWT product carrier, at an complete payment of Tk314.20 crore.
The mum tanker used to be planned to be procured via a joint venture, the place the corporate would endure 30% of the payment (comparable to Tk105 crore), while the relaxation 70% used to be to be funded by a strategic accomplice.
Nonetheless, this idea used to be later scrapped when the corporate made up our minds to amass six vessels via a executive-funded loan.
After signing a executive-to-executive (G2G) loan agreement with China, the corporate procured six vessels at a payment of over Tk1,500 crore. These vessels are literally working on numerous international routes.
When the preliminary vessel procurement idea, as mandated within the prospectus, used to be deserted, the corporate revised its fund utilization technique. The revised allocations incorporated: setting up a constructing, partial funding for the six-vessel venture, covering charges for elevating funds, and keeping approximately Tk200 crore unallocated.
As of June 2024, the total unutilized funds stood at Tk220.26 crore, in accordance with the most up-to-date reviews.
At its Forty third Annual Traditional Assembly (AGM), held in 2022, shareholders accredited the utilization of those unutilised funds for vessel procurement.
The corporate now plans to survey shareholder recognition of a two-year extension to gain the plenty of the funds for ship acquisition.
Tk475cr repaid for loan in opposition to procuring vessels
The corporate has only within the near previous handed over a cheque of approximately Tk475.25 crore to the manager adviser as essentially the well-known instalment for repaying the loan taken from the executive for procuring six vessels.
In accordance to the corporate, a loan agreement for the procurement of six new ships venture used to be signed in October 2016, between the Economic Relatives Division and China Exim Financial institution.
The venture used to be implemented on a G2G foundation to procure six vessels for the corporate.
The predominant loan quantity used to be Tk1,457.67 crore. To facilitate loan compensation, a subsidiary loan agreement used to be signed between the Finance Division and the corporate on 27 October.
Below the agreement, the corporate will repay approximately Tk2,425 crore to the executive over the subsequent 13 years.
