Home ›› 22 Dec 2022 ›› Stock
Stock regulator the Bangladesh Securities and Exchange Commission (BSEC) has approved the proposals of Trust Bank Limited and United Commercial Bank (UCB) to raise Tk 1400 crore through the issuance of bonds.
The approval came during a commission meeting held at the BSEC headquarters in the capital with its Chairman Shibli Rubayat Ul Islam in the chair on Wednesday.
The securities regulator approved Trust Bank to issue worth Tk 400 crore non-convertible, unsecured, and floating rate subordinated bond.
The bank wouldl use the fund to strengthen its additional tier-2 capital base, according to a statement issued by the BSEC.
The total amount, as per the commission statement, would be raised through private placements with a per unit price of Tk 1 crore.
A six per cent base rate for the bond would enable investors to gain a ceiling of nine per cent secured annual return.
Financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds, and high net-worth individuals would be allowed to purchase the bond through private placements.
DBH Finance will act as the trustee of the bond, while Standard Chartered Bank will act as the bond arranger. The bond would be traded on the alternative trading board of the Dhaka Stock Exchange (DSE).
The commission, at the same meeting, approved United Commercial Bank to issue an unsecured non-convertible, fully redeemable, floating rate, and subordinated bond worth Tk 1,000 crore.
The bank would issue the bond to strengthen its Tier-2 capital base.
Per-unit price of the bond has been fixed at Tk 1 core for private placement holders.
The bond would mature after seven years from the date of issuance.
The BSEC also asked the company to be listed on the alternative trading board (ATB) of the bourse.
DBH Finance Corporation Limited will act as the trustee of the bond.
In the meeting, the BSEC also approved the draft prospectus of Ekushe Stable Return Fund, an open-end mutual fund.
According to the BSEC, the primary target size of the fund is Tk 25 crore.
Of the amound, the sponsor would provide Tk 2.5 crore and the remaining Tk 22.5 crore would be collected by selling units to investors at a face value of Tk 10 each.
