After raising funds from the SME board of the Dhaka Stock Exchange (DSE), MK Footwear is going to secure funds amounting to Tk 55 crore by issuing non-convertible fully redeemable bonds.

The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved the bond at a meeting.

The tenure of the bond will be eight years and its coupon rate will be the Six months Moving Average Rate of Treasury bill (SMART) and additional 2 percent.

The bond will be issued to institutional investors and high-net worth individuals through private placement. The offer price of each bond is Tk 10 lakh.

With the proceeds, the footwear company will meet its working capital demand.

Community Bank Investment is the trustee of the bond, while Alpha Capital Management is the arranger.

Last year, the company raised Tk 10 crore by issuing one crore shares and got listed on the SME board of the DSE.

MK Footwear PLC was incorporated in 2015. It produces and exports several types of leather and synthetic footwear.