Southeast Bank to raise Tk 7.0b thru perpetual bond

FE REPORT | Saturday, 16 October 2021

Southeast Bank will raise a capital worth Tk 7.0 billion by issuing a perpetual bond to augment its tier-I capital base.

In a disclosure, the bank said its board of directors had approved the issuance of the perpetual bond.

The bond will be issued to increase the bank's tier-I capital, subject to the approval of relevant regulatory authorities, the disclosure said.

Perpetual bonds are fixed-income securities with no maturity date and investors receive interest in the form of coupon payments.

In its directive issued in May last, the Bangladesh Securities and Exchange Commission (BSEC) included a provision for the subscription of 10 per cent of a perpetual bond through public offer.

And the listing of such bonds with the stock exchanges will be conducted under the direct listing method.

Apart from Southeast Bank, 10 other banks have so far issued perpetual bonds ranging from Tk 4.0 billion to Tk 6.0 billion.

Southeast Bank, presently an 'A' category listed company, was listed on the country's stock exchanges in 2000.

Its share price closed at Tk 15.90 each on Thursday with a rise of 0.63 per cent or Tk 0.1 on the Dhaka Stock Exchange (DSE).

Meanwhile, the bank has notified that a meeting of its board of directors will be held on October 21 to consider, among others, un-audited financial statements for the third quarter (Q3) ended on September 30, 2021.

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