Trading of AIBL Perpetual Bond begins Sunday

FE REPORT | Friday, 3 December 2021

Trading of AIBL Mudaraba Perpetual Bond will commence on the Dhaka Stock Exchange (DSE) on Sunday (December 5) under 'N' category.

DSE trading code for AIBL Mudaraba Perpetual Bond is "AIBLPBOND" and DSE company code is 26005, according to an official disclosure on Thursday.

A perpetual bond is a fixed income security with no maturity date and is often considered as a type of equity rather than debt. These types of bonds are not redeemable but instead provide a never-ending stream of interest payments.

Bangladesh Securities and Exchange Commission (BSEC) on August 29 approved the proposal of Al-Arafah Islami Bank to issue "AIBL Mudaraba Perpetual Bond" worth Tk 5.0 billion.

Of the Tk 5.0 billion, Tk 4.50 billion was issued through private placement and the remaining Tk 500 million through public offering in compliance with the BSEC public offering rules.

The subscription period for AIBL Mudaraba Perpetual Bond for general public and eligible investors (EIs) was held between November 8 and November 14.

Earlier, the stock market regulator's latest directive includes that perpetual bonds which will be issued by the banks must be listed on the bourses through the direct listing method.

Al-Arafah Islami Bank, the shariah-based listed private commercial bank, will strengthen its additional Tier-1 capital base with the collected money.

This is the unsecured contingent-convertible floating rate bond. The coupon rate of the bond will be 6.0 per cent to 10 per cent.

MTB Capital Ltd is acting as the trustee of the bond, while two other investment banks -- Prime Bank Investment Ltd and UCB investment Ltd -- are working as its arranger and issue manager respectively.

Besides, Islami Bank Capital Management Ltd is working as underwriter of the bond.

Each share of Al-Arafah Islami Bank, listed on the DSE in 1998, closed at Tk 26.60 on Thursday. Its shares traded between Tk 17.90 and Tk 30.10 in the last one year.

The bank disbursed a 15 per cent cash dividend for the year ended on December 31, 2020. In 2019, it provided a 13 per cent cash dividend. The bank's paid-up capital is Tk 10.65 billion and authorised capital is Tk 15 billion, while the total number of securities is 1.06 billion.

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