City Group plans capital market fundraising
Analysis based on 6 articles · First reported Aug 13, 2026 · Last updated Aug 13, 2026
The planned capital raise could provide City Group with long-term funding and reduce its reliance on bank loans, potentially easing its debt burden. However, the sluggish capital market may struggle to absorb such a large offering, and the group's financial distress could weigh on investor sentiment.
City Group, a major Bangladeshi conglomerate, announced plans to raise up to Tk1,500 crore from the capital market, marking its first entry into the equity market. The fundraising may include an IPO, private equity, preference shares, corporate bonds, or Sukuk. LankaBangla Investments has been appointed as issue manager, with ONE Bank as banking partner. The move comes amid significant financial pressure, with outstanding debt of around Tk25,000-26,600 crore across 48 banks and non-bank financial institutions. The group is undergoing a debt restructuring process involving a consortium of 36 lenders, with sales proceeds routed through an escrow account. City Group has also requested Bangladesh — Bangladesh Bank to defer loan classification until September 30, 2026. The company is exploring asset sales, including the Bangladesh — Hoshendi Economic Zone and Ekhon, to generate liquidity. The fundraising is expected to proceed on a best-efforts basis over the next 12-18 months, subject to regulatory approvals and market conditions.
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