3 banks get BSEC nod to issue bonds worth Tk2,100cr
Three listed banks – Pubali Bank, Social Islami Bank, and Islami Bank Bangladesh – have secured approval of the Bangladesh Securities and Exchange Commission (BSEC) to issue subordinated bonds worth Tk2,100 crore in total.
The commission gave the approval in a meeting on Tuesday, said a press release.
All these bonds will be included in the Alternative Trading Board of the bourses as per conditions.
Keep updated, follow The Business Standard's Google news channel
The DBH Finance PLC is the trustee of the bonds which will be sold directly to institutional and other eligible investors through private placements.
The bonds will be issued with subordinated status, which means the buyer of the bonds accepts a lower claim on the company's assets, below senior debt holders, but still above the general shareholders.
Pubali Bank
The Pubali Bank will issue a non-convertible bond worth Tk700 crore to strengthen its Tier-II capital base.
The coupon rate of the bond will be 6-9% and its face value per unit will be Tk1 crore.
The Standard Chartered Bank will act as the arranger of the bond.
Social Islami Bank
The Social Islami Bank will issue a Tk600 crore bond to strengthen its Tier-II capital base. It will be the SIBL's fourth non-convertible, unsecured, Mudaraba, subordinated, floating rate bond.
Its face value per unit will be Tk1 crore.
The return will be calculated on the six months average deposit rate as the reference value. Besides, a 2% margin will be added with reference value on the basis of six months.
The Standard Chartered Bank will act as the arranger of this bond too.
Islami Bank Bangladesh
The Islami Bank Bangladesh Ltd will issue a Tk800 crore bond to strengthen its Tier-II capital base and invest in conventional businesses.
It will be the bank's fourth redeemable, non-convertible, floating rate, and subordinated bond. Its face value per unit will be Tk10 lakh.
The return will be calculated by taking into account the six-month average deposit rate as the reference value. A 2% margin will be added with reference value on the basis of six months.
