IPDC started its operation as a venture capital, specializing in equity investments. The under-developed market and overall prospects required IPDC to shift focus to term lending also. Nevertheless, IPDC's equity investments turned out to be very rewarding through high capital gains- especially for early projects like IDLC and Padma Textile Mills that have since become not only public but also market leaders. Thus with the revitalization of the capital market in early 1990's, IPDC was able to re-focus on equity participation. In case of common equity, IPDC will become one the stakeholders of the company. IPDC will never be the majority shareholder of the project. In common equity financing there is not any periodical payment, rather IPDC anticipate for the dividend and capital gain by selling the shares of the company in the long run.

Some of the significant common equity finances of IPDC are:

IDLC of Bangladesh Ltd.

• National Housing and Finance Company Ltd.
• International Leasing and Financial services Ltd.
• Artisan Ceramics Ltd.

Some significant features of common equity finance are:

Facility Agreement

The facility is governed by a Subscription Agreement, which will contain usual clauses generally incorporated in the Subscription Agreement.

Redemption

There will not be any predetermined redemption as the Preference Shares.

Issue Price

The Issue Price to be paid by the Subscriber to the Company for the Common Shares shall consist of a par value and premium i.e. BDT 100,000 (BDT one hundred thousand) per Comon Share at a par value of BDT 100 (BDT One Hundred) premium of BDT 99,900 (BDT ninety nine thousand nine hundred) per shares.

Dividend Rate

No fixed dividend is required to be paid even if the company makes any after tax profit.

Buy Back Guarantee

Local promoter(s) will provide a guarantee to the effect that in case of any failure by the Company, for whatever reason, to satisfy terms and condition of the facility agreement, the local promoter(s) will buy back the common shares. The buy back amount will be determined using the rate described in the Buy Back Agreement.

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