Desk Report:
The capital market regulator Bangladesh Securities and Exchange Commission (BSEC) has approved bonds worth Tk 2,300 crore of three banks. Of these, Tk 1,000 crore is from BRAC Bank, Tk 800 crore is from United Commercial Bank PLC or UCB and Tk 500 crore is from Trust Bank PLC. The bonds will have to be listed on the Alternative Trading Board (ATB).
The approval was given at the 975th commission meeting held today (September 30) under the chairmanship of BSEC Chairman Khandaker Rashed Maqsood. BSEC Assistant Director (Public Relations) and Assistant Spokesperson Md. Mohaiminul Haque gave this information in a press release.
It said that the Tk 1,000 crore bond of BRAC Bank is an unsecured, non-convertible, fully redeemable, coupon bearing, floating rate social subordinate bond. Its coupon rate will be 2.5 percent coupon margin with the reference rate. It will be issued to institutional investors through private placement. The face value of each unit of the bond is Tk 10 lakh. The bond proceeds will strengthen the Tier-2 capital base of BRAC Bank. Prime Bank Investment Limited will act as the trustee of the bond and BRAC EPL Investment Limited will act as the arranger.
UCB’s Tk 800 crore bond is an unsecured, non-convertible, redeemable, floating rate social subordinated bond. Its coupon rate will be 3 percent coupon margin with the reference rate. It will be issued to institutional investors through private placement. The face value of each unit of the bond is Tk 1 lakh. The bond proceeds will strengthen the bank’s Tier-2 capital base under Basel III. DBH Finance PLC will act as the trustee of the bond and UCB Investment Limited will act as the arranger.
The Tk 500 crore bond of Trust Bank is an unsecured, non-convertible, redeemable, floating rate subordinated bond. Its coupon rate will be 3 percent coupon margin with the reference rate. It will be issued to institutional investors through private placement. The face value of each unit of this bond is Tk 1 lakh. The bond money will strengthen the bank’s Tier-2 capital base under Basel III. DBH Finance PLC will act as the trustee of the bond and UCB Investment Limited and Trust Bank Investment PLC will act as the arrangers.
