Southeast Bank, Meghna Bank to issue bonds

The Bangladesh Securities and Exchange Commission (BSEC) has approved the proposals of Southeast Bank and Meghna Bank to issue bonds worth Tk 700 crore.

The approval came at a commission meeting on Sunday, according to a BSEC statement.

The stock market regulator approved issuance of Tk 500 crore non-convertible, unsecured, floating rate subordinated bonds in favour of Southeast Bank.

The bank will use the fund to strengthen its additional tier-II capital base, the BSEC said in a statement.

The amount will be raised through private placement while its face value per unit is set at Tk 1 crore.

A seven per cent base rate for the bond will enable investors to gain a ceiling 9 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 bonds.

The regulator also approved issuance of Meghna Bank’s non-convertible, fully redeemable, coupon bearing and subordinated bond worth Tk 200 crore.

The bank will issue the bond to strengthen its Tier-II capital base. The per-unit price has been fixed at Tk 1 core for private placement holders.