MTB Capital to arrange Tk 50cr convertible bond for Techno Drugs

MTB Capital Limited, a merchant bank and a fully-owned subsidiary of Mutual Trust Bank PLC, has signed an agreement with Techno Drugs Limited to arrange the issuance of a Tk 50 crore convertible bond.

Sumit Podder, chief executive officer (current charge) of the merchant bank, and Arefeen Raafi Ahmed, director of the drug maker, signed the agreement in Dhaka recently.

Under the agreement, Techno Drugs will raise the funds through a convertible, redeemable, coupon-bearing bond. MTB Capital will act as an arranger, according to a press release.

The bond will consist of a 75 percent convertible portion and a 25 percent redeemable portion.

The coupon rate will be floating, based on the five-year treasury bond rate plus a margin, with a maturity period of 5 years.

The proceeds from the bond issuance will be used to restructure the company’s loans, which the management expects will help improve overall profitability.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank PLC, attended the programme as the chief guest.

In the latest financial year, Techno Drugs posted revenue of Tk 337.5 crore and a profit of Tk 23.2 crore. The company also declared a 10 percent dividend for the year 2025.

The company approved the issuance of the convertible and redeemable bond at its 196th board meeting held on Thursday.

The issuance is subject to approval from shareholders and regulators.

Techno Drugs was listed on the stock market in 2024 through the book-building method, raising Tk 100 crore.