City Group Plans BDT 1,500 Crore Capital Raising to Ease Debt Crisis
Facing a significant debt burden across domestic and international financial institutions, City Group has announced a strategic plan to raise BDT 1,500 crore from the capital market. The conglomerate has appointed LankaBangla Investment as the issue manager and One Bank as the banking partner to facilitate the fund collection in Dhaka.
In a major financial maneuver to address ongoing debt challenges, City Group has officially announced a comprehensive plan to raise one and a half thousand crore takas (BDT 1,500 crore) from the country's capital market. The announcement, which came to light on Thursday in Dhaka, outlines the conglomerate's strategy to navigate through its current financial obligations and restructure its liabilities through market-driven capital collection.
To execute this significant fundraising initiative, City Group has officially appointed LankaBangla Investment to serve as the issue manager for the process. Additionally, One Bank has been designated as the banking partner and will act as the banker to the issue, ensuring smooth financial operations and management throughout the capital collection phase in Dhaka.
The move comes at a crucial time for the large conglomerate, which is grappling with substantial financial liabilities. According to official figures recorded up to last March, City Group's total outstanding loans from a staggering forty-seven (47) domestic and foreign banks and financial institutions stood at twenty-four thousand nine hundred eleven crore takas (BDT 24,911 crore).
In tandem with the capital market fundraising efforts, the group is taking broader steps to manage its massive financial exposure. City Group has assigned the internationally renowned audit firm Ernst & Young to formulate a comprehensive debt restructuring plan aimed at resolving the existing loan crisis and stabilizing the conglomerate's financial standing.
