LankaBangla Finance PLC, a non-bank financial institution, got approval from the Bangladesh Securities and Exchange Commission for the issuance of its zero-coupon bond to raise Tk 200 crore.

Its 4th zero-coupon bond, which will be a non-convertible and fully redeemable, will be issued at face value to generate liquidity to meet ongoing financing requirements, it said in a filing on the Dhaka Stock Exchange today.

A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount.

It will render a profit at maturity when the bond is redeemed for its full-face value.