City Group Eyes Tk1,500 Crore Fundraising Through Capital Market

Bangla Press Desk:  City Group plans to raise up to Tk1,500 crore from the country’s capital market as part of its financing strategy, marking its first entry into Bangladesh’s equity capital market.  

With a business legacy spanning more than five decades, City Group has grown into one of the country’s major industrial groups and a leading supplier of essential food and consumer commodities. Its operations across edible oil, flour, sugar, pulses, rice, feed and other consumer and industrial products have made the Group an important part of Bangladesh’s supply chain and broader economy.

Alongside other financing alternatives, City Group has decided to explore the capital market as a source of sustainable financing to support its future growth and financing requirements. 

The move could also contribute to the development of Bangladesh’s capital market by broadening the issuer base, creating new investment opportunities and encouraging other established corporates to consider capital market financing as an alternative source of financing.

City Group has appointed Lanka Bangla Investments PLC as Issue Manager for the proposed fundraising, which may include an Initial Public Offering (IPO), private equity, preference shares, corporate bonds, Sukuk and/or other permissible capital market instruments. Lanka Bangla Investments will lead the issue management and associated capital market activities, subject to applicable regulations and necessary regulatory approvals.

The initiative brings together City Group’s extensive industrial footprint and Lanka Bangla Investments’ capital market expertise to develop an appropriate financing structure for the Group. ONE Bank PLC will work with Lanka Bangla Investments PLC as Banking Partner & Banker to the Issue, providing permissible banking services and infrastructure in connection with the proposed transaction(s).

An agreement in this connection was signed at City Group’s corporate head office in Gulshan, Dhaka. 

The ceremony was attended by Md. Hasan, Managing Director, City Group; Farzana Rahman and Shampa Rahman, both Sponsor Shareholders and Directors of City Group; Mohammed Nasir Uddin Chowdhury, Director, Lanka Bangla Investments PLC & Managing Director, Lanka Bangla Securities PLC; and Muhit Rahman, Managing Director, ONE Bank PLC, along with senior executives from the respective organizations.

The proposed fundraising is expected to be undertaken on a best-efforts basis over the next 12 to 18 months, subject to applicable laws and regulations, requisite regulatory approvals, and prevailing market conditions.