The board of directors of Union Capital has decided to issue unsecured subordinated redeemable non-convertible bond of Tk 2.0 billion in face value through private placement.
Face value per unit (lot size) of the bond is Tk 10 million only with seven years tenure, grace period two years and coupon range is 9.0 per cent to 12 per cent per year, according to a disclosure on Monday.
The issuing of bonds is subject to the approval of the regulatory authorities — Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), the disclosure said.
The board has also informed that earlier board decision taken on 07 May 2017 to issue unsecured subordinated redeemable non-convertible bond for Tk 2.50 billion has been cancelled due to unavoidable reason.
Each share of the non-bank financial institution, which was listed on the Dhaka Stock Exchange (DSE) in 2007, closed at Tk 11.50 on Monday, losing 2.54 per cent.
The company has recommended 5.0 per cent stock dividend for the year ended on December 31, 2018 (subject to the approval of Bangladesh Bank and Shareholders). The annual general meeting is scheduled to be held on June 20.
The company’s consolidated earnings per share (EPS) stood at Tk 0.05 for January-March 2019 as against Tk 0.18 for January-March 2018.
The company’s paid-up capital is Tk 1.64 billion, authorised capital is Tk 2.0 billion and the total number of securities is 164.35 million.
The sponsor-directors own 42.82 per cent stake in the company, while institutions own 21.92 per cent and the general public 35.26 per cent as of May 31, 2019, the DSE data shows.