United Commercial Bank (UCB) said it will raise Tk 500 crore to issue another perpetual bond during a filing with the Dhaka Stock Exchange (DSE) on Tuesday.
The company informed that the board of directors has decided to issue of unsecured, contingent-convertible, non-cumulative, “UCB 2nd Perpetual Bond’ of amount up to Tk 500 crore to be included in the Additional Tier-I Capital subject to approval of regulatory authorities.
Tier 1 capital is a bank's core capital and includes disclosed reserves—that appear on the bank's financial statements—and equity capital. This money is the funds a bank uses to function on a regular basis and forms the basis of a financial institution's strength.
Earlier in December 2020, UCB had got Stock Market Regulator BSEC node, for its first perpetual bond with Tk 400 crore.
Investors will receive 8-10 per cent interest against the bond, and the face value of the bond units is Tk 10 lakh each. Institutional and other qualified investors will be offered the bond units in private placement.
New subsidiary
UCB will establish an exchange house in Singapore for remittance business.
It informed that the board of directors has decided to form the subsidiary company having paid-up capital of $0.9 million subject to the approval of the regulatory authorities.
According to the Bureau of Manpower, Employment and Training (BMET) data, last year 27,875 manpower was exported to Singapore while from 1972 to January 2022 a total of 8,25,000 manpower was exported to the country, which is 6 per cent of total expatriates.
Last year, Bangladesh received $22 billion in remittances. In the second half of 2021, $200 million remittances were received from Singapore.
