BSEC allows Pubali Bank to issue Tk500cr perpetual bond
This would be an unsecured, contingent-convertible, fully paid-up, non-cumulative and Basel three complaint
The securities regulator has approved Pubali Bank Ltd to issue a perpetual bond worth Tk500 crore.
The listed commercial bank will strengthen its additional Tier-1 capital base with the money collected, according to the Bangladesh Securities and Exchange Commission (BSEC).
This would be an unsecured, contingent-convertible, fully paid-up, non-cumulative and Basel three complaint, the regulator said on Tuesday.
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Local institutional investors and high-net-worth individuals can buy the bond units through a private placement. General investors can also buy units through a public offering.
Some Tk450 crore will be issued through private placement and the remaining Tk50 crore through a public offering.
The coupon rate will be 6% to 10% of the bond. The minimum subscription amount of the bond will be Tk5,000.
Local merchant bank Green Delta Capital Limited will act as the trustee of the bond while UCB Capital Limited and City Bank Capital Resources Limited will act as the arranger, issue manager and underwriter of the bond.
Pubali Bank was listed on the capital market in 1984.
From January to September 2021, the bank logged a consolidated profit of Tk465.21 crore, and earnings per share (EPS) stood at Tk4.52.
As of 31 October this year, sponsors and directors jointly held 31.50%, institutes 26.76%, foreign investors 0.24%, and general investors 41.50% of the company shares.
