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BSEC approves bond issuance for three banks
The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved bond issuance proposals from three banks to bolster their Tier-II capital base under Basel III.
The approval was given in the commissions’ its 975th meeting chaired by Chairman Khondoker Rashed Maqsood.
BRAC Bank PLC received approval to issue an unsecured, non-convertible, fully redeemable, floating-rate social subordinated bond worth Tk 1,000 crore, carrying a coupon rate of Reference Rate plus 2.5% margin.
The bonds will be issued through private placement to institutional investors at a face value of Tk 10 lakh per unit. Prime Bank Investment Limited will act as trustee and BRAC EPL Investment Limited as arranger.
The bond will also be listed on the Alternative Trading Board (ATB).
United Commercial Bank PLC was allowed to issue an unsecured, non-convertible, redeemable, floating-rate subordinated bond worth Tk 800 crore, with a coupon rate of Reference Rate plus 3% margin.
The bond will be privately placed among institutional investors at Tk 1 lakh per unit. DBH Finance PLC will serve as trustee, while UCB Investment Limited will act as arranger. The bond will also be listed on the ATB.
Trust Bank PLC received approval to issue an unsecured, non-convertible, redeemable, floating-rate subordinated bond worth Tk 500 crore, carrying a coupon rate of Reference Rate plus 3% margin.
The bond will be issued via private placement to institutional investors at Tk 1 lakh per unit. DBH Finance PLC will act as trustee, with UCB Investment Limited and Trust Bank Investment PLC as arrangers. The bond will also be listed on the ATB.
The proceeds from these bond issues will be used to strengthen the Tier-II capital base of the respective banks, enhancing their capital adequacy under Basel III requirements, reports UNB.