Home ›› 12 Dec 2021 ›› Stock
The Premier Bank opens the subscription process to its perpetual bond for general public and eligible investors today.
The investors will subscribe for the bond until December 19. The eligible investors will participate through electronic subscription system (ESS) while general public, including non-resident Bangladeshi (NRB), can apply through stockbrokers or merchant bankers.
The minimum subscription amount is Tk 5,000 and there is no maximum bar.
A perpetual bond is a fixed income security with no maturity date and is often considered as a type of equity rather than debt. These types of bonds are not redeemable but instead provide a never-ending stream of interest payments.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) – extended its consent to the Premier Bank on November 30 for issuing perpetual bonds worth Tk 200 crore.
Premier Bank, a listed private commercial bank, will strengthen its additional Tier-1 capital base with the collected money.
Some 90 per cent of the bonds or Tk 180 crore bonds will be issued through private placements while the remaining worth Tk 20 crore will be issued through public offer, as per the regulatory approval.
Local institutional investors such as non-banking financial institutions, insurers, banks, and asset management firms and high-net-worth individuals can buy the units of the bond through private placement.
MTB Capital is working as trustee while UCB Investment is the arranger, issue manager and underwriter of the bond.
The bond will be unsecured, contingent-convertible, fully paid-up, non-cumulative, BASEL III compliant.
The coupon rate will be 6.0 per cent to 10 per cent of the bond.
