Trading of Premier Bank Perpetual Bond will commence on bourses today (Monday) while subscription for Pubali Bank Perpetual Bond also opens today.
A perpetual bond is 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.
Premier Bank Perpetual Bond: Trading of the Premier Bank Perpetual Bond opens Monday on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) under 'N' category.
DSE trading code for the bond is "PREBPBOND" and DSE company code is 26009 while the CSE scrip code is "PREBPBOND" and the scrip ID is 40012, according to a disclosure posted on the bourses website on Sunday.
Premier Bank, a listed private commercial bank, raised Tk 2.0 billion through issuance of Perpetual Bond to strengthen its additional Tier-1 capital base.
Some 90 per cent of the bonds or Tk 1.80 billion raised through private placements while the remaining (10 per cent) or Tk 200 million raised through public offer, as per the regulatory approval.
Bangladesh Securities and Exchange Commission (BSEC) accorded its consent to the bank for raising additional Tier-l capital through issuance of Premier Bank Perpetual Bond on November 30, 2021.
MTB Capital is working as trustee while UCB Investment is the arranger, issue manager and underwriter of the bond.
Each share of the Premier Bank, which was listed on the stock market in 2007, closed at Tk 15.10 on Sunday.
Pubali Bank Perpetual Bond: Subscription of Pubali Bank Perpetual Bond by general public and eligible investors begins today (Monday) and continues until January 30.
The eligible investors shall participate through electronic subscription system (ESS) while general public, including non-resident Bangladeshi (NRB), can apply through stockbrokers or merchant bankers.
Minimum subscription amount is Tk 5,000 (or its multiples) and there is no maximum bar, according to a disclosure on the bourses website on Sunday.
Participating eligible investors will be required to pay full subscription amount and subscription fee is Tk 3,000 in the prescribed bank between 10:00am of January 10 to 2:00pm of January 30.
Earlier on December 7, 2021, the Bangladesh Securities and Exchange Commission (BSEC) accorded its consent to the bank for raising additional Tier-l capital through issuance of Pubali Bank Perpetual Bond worth Tk 5.0 billion.
As per the regulatory approval, Tk 4.50 billion out of Tk 5.0 billion will be raised through private placements while the remaining Tk 500 million will be raised through public offer.
Green Delta Capital is the trustee of the bond, while City Bank Capital Resources and UCB Investment are working as arranger, issue manager and underwriter of the bond.
The bond will be unsecured, contingent-convertible, fully paid-up, non-cumulative, BASEL III compliant.
The coupon rate will be 6.0 per cent to 10 per cent of the bond.
Each share of the bank, which was listed on the stock exchange in 1984, closed at Tk 27.40 on Sunday.
The bank's sponsor-directors hold 31.50 per cent shares, institutes 26.71 per cent, foreigners 0.25 per cent and general public 41.54 per cent as on November 30, 2021.
According to the Bangladesh Securities and Exchange Commission (Debt Securities) Rules, 2021 and directive issued on May 23, 2021, if an issuer intends to raise debt capital through issuance of perpetual bond, it shall make a public offer for at least 10 per cent of its intended offer and must be listed on the bourses through the direct listing method.
Previously, the perpetual bonds were issued only through private placement and they were not tradable on the stock market.