Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The capital market regulator has allowed raising capital through issuance of subordinated bond of two private commercial banks –Dhaka Bank and Jamuna Bank -amounting to Tk 5.0 billion each.
The approval came at a meeting of the Bangladesh Securities and Exchange Commission presided over by its chairman Prof. M Khairul Hossain in Dhaka on Wednesday.
As per the BSEC approval, the Dhaka Bank will issue non-convertible floating rate subordinated bond amounting to Tk 5.0 billion.
The purpose of the issue is to strengthen the capital base of the company.
The tenure of the non-convertible subordinated bond of Dhaka Bank will be seven years. Per unit of the bond will be Tk 1.0 million.
The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals through private placements “other than existing” shareholders of the company in cash consideration.
On Wednesday’s meeting, the BSEC also gave green light to Jamuna Bank’s non-convertible coupon bearing subordinated bond worth Tk 5.0 billion.
The Jamuna Bank will issue non-convertible coupon bearing subordinated bond to strengthen the capital base and meet capital requirement under Tier-II only through private placement, subject to the approval from Bangladesh Bank.
The purpose of the proposed bond is to strengthen the capital base of the Bank.
Characteristics of the Jamuna Bank bond is non-convertible, fully redeemable, coupon bearing, unsecured, unlisted, subordinated.
The tenure of the bond will be seven years. Per unit price of the bond will be Tk 10 million.
The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, and high net worth individuals through private placements.