BSEC approves draft prospectus of new mutual fund

FE Report | Published: July 17, 2019 10:44:48 | Updated: July 18, 2019 10:26:16

The securities regulator has approved the draft prospectus of an open-ended mutual fund, Capitec Popular Life Unit Fund, with an initial target size of Tk 250 million.

The approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) held at its office in the city on Tuesday, with its Chairman M Khairul Hossain in the chair, said a BSEC statement.

Of the target size, sponsor-directors will provide Tk 50 million, while the remaining Tk 200 million will be collected from general investors by selling its units. The face value of each of the unit will be Tk 10.

The Capitec Asset Management Ltd. will act as the asset manager of the fund while the ICB is acting as trustee and custodian of the fund and the Popular Life Insurance Company Ltd is the sponsor.

At the meeting, the BSEC also approved a non-convertible subordinate bond worth Tk 5.0 billion in favour of Bank Asia.

The purpose of the bond issue is to strengthen the capital base (Tier-11) of the company. The tenure of the bond will be seven years. Per unit price of the bond will be Tk 10 million.

The bond 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.

The Standard Chartered Bangladesh and the Green Delta Insurance Company will act as the lead arranger and trustee of the bond respectively.


Share if you like