Bangladesh’s top textile firm to raise 102 mln dlrs for expansion

DHAKA, Oct 2, 2006 (AFP) – Bangladesh’s biggest textile manufacturer said Monday it would raise 102 million dollars abroad to finance expansion into high value-added textiles. The company would raise 51 million dollars by issuing global depository receipts (GDRs) in foreign capital markets and another 51 million dollars through overseas bonds and shares to sponsors, the company said in a statement.

Bextex was formed Sunday by the merger of the four textile units of Bangladesh’s leading conglomerate, Beximco.

In terms of turnover, it is now the biggest Bangladesh textile manufacturer.

The expansion will boost Bextex’s production to nearly 50 million garment items annually, it said, adding the company has planned to invest 36 million dollars by next June in its foray into high value added fabrics.

After the expansion, the company expects to earn annual profits of 41 million dollars on yearly turnover of 265 million dollar, it added.

The capital-raising move comes amid a boom in Bangladesh’s textile exports.

In the year ended June 30, Bangladesh’s textile exports grew by more than 24 per cent to a record 7.9 billion dollars.

Beximco is one of Banglad