Dhaka: The Bangladesh Securities and Exchange Commission (BSEC) has approved Meghna Bank PLC's proposal to issue a Tk 400 crore non-convertible, unsecured, fully redeemable, floating rate subordinated bond. The approval was granted during the 1026th commission meeting presided over by BSEC Chairman Masud Khan at the BSEC headquarters.
According to United News of Bangladesh, the bond will have a tenure of seven years and will carry a coupon rate based on the reference rate plus a 3 percent margin. The face value per unit of the bond has been set at Tk 5,00,000. Meghna Bank plans to issue the bond through private placement targeting corporate institutions, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies.
The proceeds from the bond issuance are intended to strengthen Meghna Bank PLC's Tier-II Capital Base under the Basel III framework. DBH Finance PLC will act as the trustee for the bond, while BRAC EPL Investments Limited will serve as the issue manager.