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BSEC approves Tk 1,600cr bond for 3 companies

Staff Correspondent
06 Sep 2021 00:00:00 | Update: 06 Sep 2021 01:30:28
BSEC approves Tk 1,600cr bond for 3 companies

Bangladesh Securities and Exchange Commission on Sunday approved proposals of Islami Bank Bangladesh, Shahjalal Islami Bank, and LankaBangla Finance Limited to issue Tk 1,600 crore bond.

The stock market regulator approved the proposals at a meeting held at its headquarters. BSEC chairman Prof Shibli Rubayat-Ul-Islam presided over the meeting.

The BSEC approved Islami Bank’s Tk 800 crore floating rate, non-cumulative BASEL three complaint perpetual bond. The purpose of the issue is to strengthen the capital base additional Tier-1 of the company.

According to the commission’s statement, Tk 720 crore will be raised through private placement and Tk 80 crore through an initial public offering in compliance with the commission’s public offer rules.

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

SBL Capital Management Limited will act as the trustee of the bond while Prime Bank Investment Limited and UCB Investment Limited will jointly act as the issue managers of the bond.

The commission also approved Shahjalal Islami Bank’s unsecured non-cumulative perpetual bond worth Tk 500 crore.

The bank will issue the bond to strengthen its additional Tier-1 capital base. The per-unit price has been fixed at Tk 5,000 for general investors and Tk 5 crore for private placement holders.

According to the commission’s statement, Tk 450 crore will be raised through private placement and Tk 50 crore through an initial public offering in compliance with the commission’s public offer rules.

A 6 per cent base rate for the bond will enable investors to gain a ceiling 10 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 bond.

MTB Capital Limited will act as the trustee of the bond while Islami Bank Capital Management Limited and UCB Investment Limited will jointly play the role of the issue managers of the bond.

In the meeting, the BSEC also approved the LankaBangla Finance Limited’s non-convertible zero-coupon bond worth Tk 300 crore (Total issue price 265.33 crore).

LankaBangla will issue the bond to financing in corporate and SME sectors. The per-unit price has been fixed at Tk 53,06,743 for private placement holders.

IIDFC Capital Limited will act as the trustee of the bond while Green Delta Capital Limited will act as the arranger of the bond.