Al-Arafah Islami Bank’s Tk 500cr bond approved

The Bangladesh Securities and Exchange Commission (BSEC) has approved the proposal of the Al-Arafah Islami Bank’s Tk 500 crore Mudaraba subordinated bond.

The commission approved the issuance of the non-convertible, floating-rate subordinated bond for seven years in favour of the bank, said the regulator in a statement on Wednesday.

The bank will issue the bond to strengthen its Tier-2 capital base. The per-unit price of the bond has been fixed at Tk 5 lakh for private placement holders.

Financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds, and high net-worth individuals through private placements can purchase the bond.

First Security Islami Capital & investment limited will act as the trustee of the bond while UCB Investment Limited and Prime Bank investment limited will play the role of the Lead arranger of the bond.

The bond will be traded on the Alternative Trading Board to be launched soon.