NRB Commercial Bank gets nod to issue Tk500cr bond

NRB Commercial Bank has received approval from the securities regulator, the Bangladesh Securities and Exchange Commission (BSEC), to issue a Tk 500 crore bond.

The BSEC approval came during a commission meeting held on Wednesday, said a BSEC statement.

The bank will use the fund to strengthen its additional tier-2 capital base.

According to the commission statement, the coupon rate of the bond ranges from 7 per cent to 9 per cent with a unit price at Tk 1 crore.

Financial institutions, mutual funds, insurance companies, scheduled banks, regional rural banks, trusts, organisations, corporations and high net-worth individuals can purchase the bond.

City Bank Capital Resources Limited will act as the trustee of the bond while UCB Investment Limited will act as the lead arranger.

At the same meeting, Banga Building Materials Limited got approval to raise Tk 300 crore fund through secured, non-convertible and fully redeemable asset-backed sukuk.

An 8 per cent base rate for the bond will enable the bank to gain an annual return secured by an 11 per cent ceiling.

According to the commission statement, Tk 160 crore will be used to refinance the existing machinery of Banga Building Materials Limited and the remaining Tk 139 crore will be used for the purchasing of new machinery.

The face value of each unit of this sukuk is Tk 5,000. The minimum subscription for the sukuk will be Tk 1 lakh and the lot will be 20 shares.

This six-year sukuk will have a one-year grace period, according to the statement.

First Security Islami Capital & Investment Limited will act as the trustee and City Bank Capital Resources will act as the issue adviser and arranger.

Besides, the sukuk will be listed on the alternative trading board.