TMSS Women Empowerment Zero Coupon Bond

Company Description:
Thengamara Mohila Sabuj Sangha (TMSS) is a renowned NGO founded in 1980 which is
perennially working towards alleviating poverty in Bangladesh. TMSS has mandated Eastern
Bank Ltd (EBL) to arrange the issuance of BDT 2,001 Billion (face value) non- convertible 3 year
zero coupon bond. The proceeds of the bond will be utilized for Women Empowerment Financing.

TMSS financials:
TMSS has a resilient balance sheet properties which is supported by its dominant consumer base
in the northern region of the country. It has a capital base of over BDT 1,300 cr.
(All numbers in BDT million) 2021 2020 2019 2018
(January)
Total Assets: 39,503 36,312 32,670 27,320
Members savings deposit: 11,367 10,265 9,269 7,558
Total Receivables: 35,287 31,933 28,985 24,242
Surplus 1,317 2,149 1,650

Issue details:
The expected discount rate is 7.50%. This return is tax exempt for individuals and corporates
which are not financial institutions. For comparison, if such an entity puts the money in a Fixed
Deposit at 6%, the return after taxes of (25%) would be 4.50%. Thus, this bond will yield a
premium of 3.0% over such an investment.

Security:
This bond is unsecured. However, it is hypothecated by 150% receivables of issue size.

Redemption Schedule:
The issuance will be done through private placement with 2,001 bonds of BDT 1 Million each
grouped into 667 lots (BDT 3 million) of 3 bonds each. The repayment schedule, which will be the
face value in 100% cash, is shown below.

Per Lot Total

Year Discount rate (annual) Issue price Face Value Issue price Face Value
1 7.50% 930,233 1,000,000 620,465,116 667,000,000
2 7.50% 865,333 1,000,000 577,176,852 667,000,000
3 7.50% 804,961 1,000,000 536,908,700 667,000,000
Total 2,600,526 3,000,000 1,734,550,668 2,001,000,000