The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved proposals from five commercial banks to raise a combined Tk 3,500 crore through bond issues to strengthen their capital base.
The decisions were taken at the commission's 1031st meeting, held at its office in Agargaon with BSEC Chairman Masud Khan in the chair.
The commission approved a Tk 400 crore unsecured, non-convertible, fully redeemable, floating rate subordinated bond (Bond-VI) of One Bank PLC.
The coupon rate will be the reference rate plus 3 percent. It will be issued through private placement to institutional and high-net-worth individual investors, with a face value of Tk 1 lakh per unit.
Green Delta Capital Limited will act as trustee and UCB Investment Limited as issue manager.
It also approved Southeast Bank PLC's Tk 800 crore, seven-year, fully redeemable, non-convertible, unsecured, floating rate subordinated bond (6th Issue), carrying a coupon of the reference rate plus 3 percent.
Each unit will have a face value of Tk 5 lakh and will be placed privately with institutional and high-net-worth investors. DBH Finance PLC will serve as trustee and UCB Investment Limited as issue manager.
BRAC Bank PLC received approval for a Tk 1,000 crore, three-year, unsecured, non-convertible, fully redeemable zero-coupon green bond, with a probable discount rate of 8.5 percent.
Corporate entities, provident and gratuity funds, high-net-worth individuals and other eligible investors can subscribe through private placement, with each unit valued at Tk 10 lakh.
The bank will use the proceeds for low-cost green financing to eligible clients. Prime Bank Investment PLC will be the trustee and IDLC Investments Limited the issue manager.
The commission also approved Al-Arafah Islami Bank PLC's Tk 500 crore, seven-year, unsecured, non-convertible, redeemable, floating rate subordinated bond (AIBPLC 5th Subordinated Bond).
The coupon will be the reference rate plus 3 percent, and each unit will be worth Tk 5 lakh. It will be issued to institutional and high-net-worth investors through private placement. DBH Finance PLC will be the trustee and UCB Investment Limited the issue manager.
Bank Asia PLC's Tk 800 crore, seven-year, unsecured, non-convertible, fully redeemable, floating rate and sustainable subordinated bond was also cleared.
The coupon rate will be the reference rate plus 3 percent, with each unit valued at Tk 10 lakh. It will be placed privately with institutional investors, high-net-worth individuals and other eligible investors.
Besides bolstering the bank's Tier-II capital, the proceeds will finance and refinance eligible green and sustainable projects. DBH Finance PLC will be the trustee and Prime Bank Investment PLC the issue manager.
The proceeds of One Bank, Southeast Bank, Al-Arafah Islami Bank and Bank Asia bonds will strengthen their Tier-II capital base under Basel III.
The One Bank, Southeast Bank, BRAC Bank and Bank Asia bonds must be listed on the Main Board of the stock exchanges.