Home ›› 30 Aug 2021 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has approved Al Arafah Islami Bank Limited’s unsecured mudaraba perpetual bond worth Tk 500 crore.
The bank will issue the bond to strengthen its additional Tier-1 capital base. The per-unit price has been fixed at Tk 5,000 for general investors and Tk 5 crore for private placement holders.
The decision was taken at the commission’s 789th meeting on Sunday. BSEC Chairman Professor Shibli Rubayat-Ul-Islam presided over the meeting.
According the commission’s statement, Tk 450 crore will be raised through private placement, and Tk 50 crore through an initial public offering in compliance with the commission’s public offer rules.
A 6 per cent base rate for the bond will enable investors to gain a ceiling 10 per cent secured annual return.
Financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds, and high net-worth individuals through private placements can purchase the bond.
The bond will also be contingent-convertible, un-secured, and at a floating rate.
MTB Capital Limited will act as the trustee of the bond while Prime Bank Investment Limited and UCB Investment Limited will jointly act as the issue managers of the bond. Islami Bank Capital Management Limited will act as underwriter of the bond.
The commission also approved the draft prospectus of an open-ended mutual fund, GM Equity 1st Mutual Fund, with an initial target size of Tk 10 crore.
Of the target size, sponsor-directors will provide Tk 1 crore, while the remaining Tk 9 crore will be collected from general investors by selling its units. The face value of each unit will be Tk 10.
Meanwhile, BSEC also found evidence of irregularities against ICB Securities Trading Company Limited, including providing margin loans to customers in cash accounts, not keeping proper records of customer securities, operating more than one integrated customer account in the same bank and operating more than one individual and joint BO account in the name of one customer.
The regulatory body has also given time till September 30 for ICB Securities to rectify the issues. Otherwise, the commission has decided to impose a fine of Tk 5 crore. At the same time, if it fails in that combination, ICT Securities will be fined Tk 10,000 for each day for its failure to comply with the BSEC directive.
In the meeting, the commission also decided to issue a registration certificate as market maker to Be Rich Limited under the Bangladesh Securities and Exchange Commission (Market Maker) Rules, 2017. The company is TREC holder of the Chittagong Stock Exchange.
