Bangladesh Securities and Exchange Commission (BSEC), the regulator of the country's capital markets, has approved bonds worth Tk 800 crore for two listed banks. The approval was given at the 731st meeting of the BSEC on Sunday (July 5).
The BSEC meeting approved a total of Tk 800 crore bonds worth Tk 400 crore for One Bank and Tk 400 crore for Mutual Trust Bank.
One Bank's unsecured, non-convertible, Basel III compliant perpetual bond of Tk 400 crore are non-convertible and come with a coupon rate of 11% to 14%. The Perpetual Bond will be issued through private placement to government financial institutions, mutual funds, insurance companies, listed banks, cooperative banks, regional rural banks, organizations, trusts, autonomous corporations and other eligible investors.
One Bank Limited will strengthen its additional Tier-I capital base by raising funds from various institutions through this bond issue. The face value of each unit of this bond is Tk 10 lakh. EBL Investments Limited and Citibank Capital Resources Limited are acting as trustees and lead arrangers of the bonds respectively.
