• Thursday, Jan 21, 2021
  • Last Update : 04:59 pm

Two banks get BSEC consent to issue Tk900cr bond

  • Published at 10:39 pm May 21st, 2018
  • Last updated at 10:51 pm May 21st, 2018
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The Bangladesh Securities and Exchange Commission (BSEC) has permitted two private commercial banks – Mercantile Bank and Rupali Bank Limited – to issue subordinated bonds worth a total of Tk900 crore.

The approval came at 645th meeting of the BSEC presided over by its chairman Prof M Khairul Hossain at capital on Monday.

As per the BSEC approval, the Mercantile Bank will issue unsecured subordinate floating rate bonds amounting to Tk300 crore. The purpose of the issue is to strengthen the capital base of the company. The tenure of the Mercantile Bank bonds will be seven years. Per unit price of the bonds will be Tk1 crore.

The units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals “other than existing” shareholders of the company through private placements in cash consideration.

On Wednesday’s meeting, the BSEC also gave green light to Rupali Bank’s unsecured subordinate floating rate bonds worth Tk600 crore.

The Rupali Bank will issue unsecured subordinate floating rate bonds to strengthen its capital base and meet its capital requirement under Tier-II only through private placement, subject to the approval from Bangladesh Bank.

The tenure of the bond will be seven years. Per unit price of the bond will be Tk10 lakh.

The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, and high net worth individuals through private placements.

Green Delta Insurance Company Limited will act as the issue manager for both the bonds. 

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