The securities regulator Bangladesh Securities and Exchange Commission (BSEC) has approved Grameen Bank to issue a Tk 200 crore mutual fund named Capitec Grameen Bank Growth Fund.
The approval came during a commission meeting held at the BSEC headquarters on Monday, as per a BSEC statement.
Grameen Bank already contributed Tk 100 crore to the fund as its originator, while the remaining Tk 100 crore will be collected from investors through the issuance of an initial public offering (IPO).
The face value per unit of the fund is Tk 10.
Investment Corporation of Bangladesh (ICB) is the trustee of the fund, while Capitec Asset Management Company will act as the fund manager.
This will be the fourth mutual fund managed by Capitec Asset Management.
To this end, Grameen Bank also singed separate agreements with the ICB, and Capitec Asset Management.
Mutual funds pool money from investors to channel it into securities such as stocks, bonds and other assets. Investors are then paid their shares as dividends depending on the profits earned.
