Dhaka:According to United News of Bangladesh, Southeast Bank PLC plans to raise Tk 800 crore by issuing its 'Southeast Bank 6th Subordinated Bond'. This decision received approval during the Bangladesh Securities and Exchange Commission's 1,031st meeting, which was chaired by BSEC Chairman Masud Khan.
The bond, which has a seven-year term, will be non-convertible and unsecured, with full redemption upon maturity. Its coupon rate will be determined by the reference rate plus an additional 3 percent. The issuance will be conducted via private placement, targeting institutional investors and high-net-worth individuals, with a face value of Tk 5 lakh per unit.
Proceeds from the bond issuance will be used by Southeast Bank to enhance its Tier-2 capital base in compliance with Basel III standards. DBH Finance PLC is designated as the trustee for this bond, while UCB Investment Limited will manage the issue. The bond is set to be listed on the main boards of both stock exchanges in Bangladesh.