The purpose of the issue is to strengthen the capital base (Tier-2) of the company
The stock market regulator yesterday approved a mudaraba redeemable non-convertible subordinated bond of Tk600 crore in favour of Islami Bank Bangladesh Limited.
The approval was given at a commission meeting held at its headquarters. The Bangladesh Securities and Exchange Commission (BSEC) Chairman M Khairul Hossain presided over the meeting, said a BSEC statement.
The purpose of the issue is to strengthen the capital base (Tier-2) of the company. The tenure of the bond will be seven years. The per unit price has been fixed at Tk1crore.
The units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net-worth individuals through private placements.
Green Delta Insurance Company Limited will act as the trustee and Standard Chartered Bank as arranger for the bond.
Islami Bank Bangladesh was listed on the Dhaka Stock Exchange (DSE) in 1985. The company’s sponsor directors now hold 48.93% share, institutional investors hold 11.79%, foreign 24.13% and general shareholders hold 15.14% share of the bank.
The BSEC at the meeting also approved a proposal for increasing the paid up capital of Power Greed Company of Bangladesh Limited from Tk251.81 crore to Tk712 crore.
The Commission has also taken steps to amend the Securities and Exchange Rules,1987. Wednesday’s commission meeting approved the draft rule of the proposed Securities and Exchange Rules that will be published on its website and in newspapers for public review.