Dhaka:The Bangladesh Securities and Exchange Commission (BSEC) has approved proposals from five commercial banks to raise a total of Tk 3,500 crore through bond issues, aimed at reinforcing their capital base.
According to United News of Bangladesh, the approvals were granted during the commission's 1031st meeting, chaired by BSEC Chairman Masud Khan at the BSEC office in Agargaon.
One Bank PLC received approval for a Tk 400 crore unsecured, non-convertible, fully redeemable, floating rate subordinated bond (Bond-VI). The bond will have a coupon rate of the reference rate plus 3 percent, issued through private placement to institutional and high-net-worth individual investors. Each unit will have a face value of Tk 1 lakh, with Green Delta Capital Limited acting as trustee and UCB Investment Limited as the issue manager.
Southeast Bank PLC's proposal for a Tk 800 crore, seven-year, fully redeemable, non-convertible, unsecured, floating rate subordinated bond (6th Issue) was also approved. It will carry the same coupon rate, with each unit valued at Tk 5 lakh, offered through private placement. DBH Finance PLC will serve as trustee with UCB Investment Limited as issue manager.
In addition, BRAC Bank PLC was approved to issue a Tk 1,000 crore, three-year, unsecured, non-convertible, fully redeemable zero-coupon green bond at a probable discount rate of 8.5 percent. This bond will be available to corporate entities, provident and gratuity funds, high-net-worth individuals, and other eligible investors through private placement, with units priced at Tk 10 lakh. The proceeds will be used for low-cost green financing, with Prime Bank Investment PLC as trustee and IDLC Investments Limited as the issue manager.
Al-Arafah Islami Bank PLC's Tk 500 crore, seven-year, unsecured, non-convertible, redeemable, floating rate subordinated bond (AIBPLC 5th Subordinated Bond) was also granted approval. This bond will feature a coupon rate of the reference rate plus 3 percent, with units valued at Tk 5 lakh, and will be available to institutional and high-net-worth investors. DBH Finance PLC will act as trustee and UCB Investment Limited as the issue manager.
Bank Asia PLC received the nod for a Tk 800 crore, seven-year, unsecured, non-convertible, fully redeemable, floating rate and sustainable subordinated bond. This bond will carry a similar coupon rate, with units priced at Tk 10 lakh, and will be privately placed with institutional investors, high-net-worth individuals, and other eligible investors. The proceeds will support Tier-II capital and finance green and sustainable projects, with DBH Finance PLC as the trustee and Prime Bank Investment PLC as the issue manager.
The bonds from One Bank, Southeast Bank, Al-Arafah Islami Bank, and Bank Asia will contribute to strengthening their Tier-II capital base under Basel III. Additionally, bonds issued by One Bank, Southeast Bank, BRAC Bank, and Bank Asia are required to be listed on the Main Board of the stock exchanges.