Home ›› 07 Oct 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has approved Dhaka Bank Limited to issue a contingent convertible perpetual bond worth Tk 200 crore.
The stock market regulator gave the go-ahead to the bank at a commission meeting held in its headquarters with its Chairman Prof Shibli Rubayat Ul Islam in the chair.
As per the BSEC approval, the bank will float the unsecured, contingent convertible, floating rate subordinated, and perpetual bond to collect Tk 200 crore.
Local institutional investors and high-net-worth individuals are eligible to buy the bond units through private placements, while general investors would be allowed to avail of units through a public offering.
The face value of each unit of the bond would be Tk 5,000, and its coupon rate would be from 6 to 10 per cent.
The units worth Tk 180 crore would be issued through private placements while the remnant units worth Tk 20 crore would be issued through a public offering.
The bank is issuing the bond to strengthen its capital base and meet capital requirements under Tier-I.
IDLC Investment Limited acts as the trustee of the bond while UCB Investment Limited is the mandated issue manager and arranger of the process.
Meanwhile, a Dhaka Stock Exchange (DSE) filing revealed Thursday that Dhaka Bank’s Sponsor Director Mohammed Hanif, would transfer 199,639 shares out of his holdings of 2,97,13,630 shares in the company to his son Asif Hanif, a general shareholder of the bank, as a gift.
The transfer process would be implemented outside the trading system of the Dhaka bourse by October 31 next.
The bank’s share was traded at Tk 13.60 per share on the DSE on Thursday.
With a market capitalisation of Tk 1,291 crore, the bank has a paid-up capital base of Tk 949 crore and a surplus reserve of Tk 1,146 crore.
Out of the total shares, its sponsor-directors own 42.54 per cent while institutional investors and the general public hold 27.99 per cent and 29.47 per cent respectively till August 31, 2022.
