Date:
The DirectorForeign Exchange Investment DepartmentBangladesh Bank, Head OfficeMotijheel Commercial Area, Dhaka-1000, Bangladesh.
Through: Prime Bank PLC, Banani Branch.
Subject: Information Regarding Allotment of Paid-Up Capital from Loan. (Conversion Debt to Equity).
This is to inform you that Bangladesh NAXIS Co. Ltd. has decided to convert the outstanding short-term loan received from its parent company, NAXIS CO., LTD., Japan, into equity. The loan amount of USD 700,000.00, equivalent to BDT 58,765,000.00, was remitted to Bangladesh on 02 March 2021 and remained outstanding mainly due to the impact of the COVID-19 pandemic on business operations.
After financial review and considering the long-term sustainability of the company, the management of both Bangladesh NAXIS Co. Ltd. and NAXIS CO., LTD. Japan have mutually agreed to execute a debt–equity swap. Under this arrangement, the company will issue and allot 587,650 ordinary shares of BDT 100.00 each in favor of NAXIS CO., LTD., Japan, against the outstanding loan amount.
This decision has been approved by the Board of Directors of both entities, and the company has already filed an application for the allotment of paid-up share capital to RJSC and obtained Form XV.
This letter is submitted for your kind information and record.
Yours sincerely,
🗸
________________
Chongying Liang
Managing Director
BANGLADESH NAXIS CO. LTD.
Attachment:
Board Resolution; 2. RJSC Form XV. 3. Encashment Certificate