• Tuesday, Mar 31, 2020
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BSEC approves City Bank’s Tk300 crore bond

  • Published at 10:25 pm February 26th, 2020
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SBL Capital Management Limited will act as the trustee and City Bank Capital Resources Limited as arranger for the bond

The stock market regulator on Tuesday approved a fully redeemable non-convertible zero coupon bond of Tk300 crore in favor of The City Bank 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 of the company. The tenure of the bond will be three years. The per unit price has been fixed at Tk5,000. 

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.

SBL Capital Management Limited will act as the trustee and City Bank Capital Resources Limited as arranger for the bond.

The City Bank was incorporated in 1983 as a commercial bank. The bank was listed at the Dhaka Stock Exchange (DSE) in 1986. 

The company’s sponsor directors now hold 27.92% share, institutional investors hold 20.59%, foreign 9.57% and general shareholders hold 41.92% share of the bank.