CREDIT RATING REPORT
BEXIMCO PHARMA- FULLY CONVERTIBLE PREFERENCE SHARE
Address: This is a Credit Rating Report as per the provisions of the Credit Rating Companies Rules 1996. CRISL’s Long Term
CRISL Rating is valid for one year and Short-Term Rating is valid for six months only. After the above period, these ratings will
Nakshi Homes not carry any validity unless the company goes for rating surveillance.
6/1A, Segunbagicha, Issue Rating
Tel: 7173700-1 Fully Convertible A
Fax: 88-02-9565783 Preference Share (Single A)
Date of Rating October 19, 2009
Khandakar Aminul Islam
email@example.com 1.0 TRANSACTION SUMMARY
firstname.lastname@example.org Beximco Pharmaceuticals Limited (hereinafter referred as “BPL”) is going to issue
41,000,000 fully convertible, 5% dividend Preference Shares of Taka 100 each which will
give cash inflow of Tk. 4,100 million in total. The above cash flow will be utilized by the
company to finance BMRE, working capital and it is also contemplating to take up few new
Issue Rating: Single “A” projects related to pharmaceutical industry. The issue of preference share has been
structured as follows:
Issuer Rating :
Long Term : A
o The Preference Shares shall be converted into Ordinary Shares in two stages. Half
Short Term : ST -3
of the preference share value, that is Taka 50, of each preference share will be
converted into ordinary shares on February 1, 2010 and the other half on May 2,
ISSUER : BEXIMCO 2010 at 25 % discount on the value that will be calculated on the basis of the
weighted average price of the Dhaka Stock Exchange that may prevail during the
three-months ending 31 January 2010 and 30 April 2010 respectively;
o An interim dividend at 2.5% for each quarter will be paid on February 1, 2010 and
Issue Mode: May 2, 2010 against the preference shares. Record date for the above interim
Fully Convertible Preference
dividend shall be 31 January 2010 and 29 April 2010.
o Shareholders as appeared in the book on Record Date will have the option to
Amount Rated subscribe for 15,115,000 Preference Shares as above on a 10:1 basis, i.e.
Tk. 4,100 million shareholders holding 10 (ten) existing Ordinary Shares will have the option to
subscribe for 1 (one) Preference Shares within 25 October 2009
o The unsubscribed Preference Shares referred to in paragraph 3 above; and
INCORPORATED IN remaining 25,885,000 Preference Shares will be privately placed;
FY 1976 o Preference Shares will be issued on 1 November 2009 subject to SEC’s consent to
the aforesaid Preference Share Issue prior to that date.
o There will be a one year lock-in on the converted Ordinary Shares from the date of
BOARD CHAIRMAN issue of the Preference Shares
Mr. Ahmed Sohail Fasiur o The Preference Shares will not be listed and/or publicly placed. However, these will
Rahman be transferable like any other shares.
In order to accommodate the conversion of preference shares to ordinary shares as
mentioned above it has also been decided to increase the authorized capital to Tk.
Managing Director 9,100,000,000.
Mr. Nazmul Hassan
2.0 ISSUE RATING RATIONALE
CRISL has assigned “A” (pronounced as Single A) rating to the fully convertible preference
Tk. 10,635 million share (hereinafter referred as “CPS”) of Beximco Pharmaceuticals Limited. The above rating
falls under the investment category that reflects the issuer’s good corporate standing and
also offer adequate safety for timely repayment of financial obligations.
CRISL has rated the issue in the above category mainly considering its full conversion
Page 1 of 17 features such as no principal fund payment obligation, CPS holders priority over ordinary
shareholders in respect of repayment of capital in case of liquidation etc Keeping in view the
dividend payment obligation attached with the CPS feature, CRISL foresees that BPL
cashflow will be enough to support the payment obligation albeit expansion program in hand