BSEC allows five banks to raise Tk 35b through bonds

The securities regulator has allowed five listed banks to raise a combined Tk 35 billion through bonds, mainly to strengthen their Basel III Tier-II capital and finance green and sustainable projects.

The approvals were given at the commission’s meeting on Tuesday, chaired by Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.

As per the regulatory approval, all five bond to be listed on the main board of the Dhaka Stock Exchange.

BRAC Bank PLC will raise Tk 10 billion through a three-year unsecured, non-convertible, fully redeemable zero-coupon green bond. The proposed discount rate is 8.5 per cent, while the face value will be Tk 1 million per unit.

The bond will be issued through private placement to corporate entities, provident and gratuity funds, high-net-worth individuals and other eligible investors. The proceeds will be used to provide low-cost green financing to eligible customers. Prime Bank Investment will act as trustee and IDLC Investments as issue manager.

Southeast Bank PLC also received approval to raise Tk 8 billion through a seven-year fully redeemable, non-convertible, unsecured, floating-rate subordinated bond (6th). The coupon rate will be the reference rate + 3 per cent, with a face value of Tk 0.5 million per unit.

The bond will be issued through private placement to institutional investors and high-net-worth individuals. The proceeds will strengthen the bank’s Tier-II capital base under Basel III. DBH Finance will serve as trustee and UCB Investment as issue manager.

Bank Asia PLC will raise Tk 8 billion through a seven-year unsecured, non-convertible, fully redeemable, floating-rate and sustainable subordinated bond. The coupon rate will be Reference Rate + 3 per cent, with a face value of Tk 1 million per unit.

The bond will be issued through private placement to institutional investors, high-net-worth individuals and other eligible investors. The proceeds will be used to strengthen the bank’s Tier-II capital base under Basel III and to finance and refinance eligible green and sustainable projects.

DBH Finance will act as trustee and Prime Bank Investment as issue manager.

Al-Arafah Islami Bank PLC also received approval to raise Tk 5 billion through a seven-year unsecured, non-convertible, redeemable, floating-rate subordinated bond. The coupon rate will be the reference rate + 3 per cent, with a face value of Tk 0.5 million per unit.

The proceeds will be used to strengthen the bank’s Tier-II capital base under Basel III. DBH Finance will act as trustee and UCB Investment as issue manager.

As per the regulatory approval, One Bank will raise Tk 4 billion through an unsecured, non-convertible, fully redeemable, floating-rate subordinated bond. The coupon rate will be the reference rate +3 per cent. The bond will be issued through private placement to institutional investors and high-net-worth individuals, with a face value of Tk 0.1 million per unit.

The proceeds will be used to strengthen the bank’s Tier-II capital base under Basel III. Green Delta Capital will act as trustee and UCB Investment as issue manager.

Source: The Business Standard