A working committee formed under the instructions of Bangladesh Bank has recommended a six-year extension of Beximco Ltd’s Shariah-compliant green Sukuk. The company has informed that repaying the principal in December 2026 will not be feasible.

The 21-member committee, led by the Investment Corporation of Bangladesh (ICB), has proposed a new maturity date of 2032 for the Tk3,000-crore Sukuk. The extension is prompted by Beximco’s financial strain, delays in two Sukuk-funded projects, and failure to convert Sukuk units into shares as initially planned.

Under the original arrangement, 20% of the Sukuk was to be converted into shares annually over five years. Between 2022 and 2024, Tk1,800 crore was scheduled for conversion, but only Tk190 crore — 6.36% — was converted, leaving an outstanding principal of Tk2,809 crore. Investors avoided conversion due to the Sukuk’s attractive 9% semi-annual profit.

A senior Beximco official stated that given the setbacks after 5 August 2024, repayment by 2026 is impossible. A six-year extension could allow full repayment.

The Sukuk financed two solar projects — Teesta and Korotoa — and the textile expansion project. Teesta Solar Park, operational since January 2023, has generated Tk1,693.31 crore up to October 2025. Korotoa Solar Park remains inactive and requires Tk150 crore to restart. The textile unit is partially operational due to raw material disruptions.

The committee suggested that if Korotoa is revived, the extension could be limited to five years. It also recommended maintaining the 9% semi-annual profit, granting the SPV power of attorney over the project lands and textile building, and increasing the sinking fund.