BSEC allows UCB to raise Tk 7.75b through rights shares

The securities regulator has approved a Tk 7.75 billion rights share issue by United Commercial Bank and given the green light to a new open-end mutual fund as part of efforts to strengthen the country's capital market.

The approvals came at the commission meeting on Tuesday, chaired by Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.

Under the approval, UCB will raise Tk 7.75 billion through the issuance of 775.2 million rights shares at a face value of Tk 10 each.

The bank will offer one rights share for every two existing shares held by shareholders. The proceeds from the rights issue will be utilised for the lender's regular business operations, according to the securities regulator.

The approval marks one of the largest rights issues by a listed bank in recent years and is expected to strengthen UCB's capital base, supporting future business expansion and regulatory capital requirements.

In a separate decision, the commission approved the draft prospectus and abridged version of the prospectus for the Blue-Wealth First Stable Return Fund, an open-end mutual fund with a target size of Tk 300 million.

The sponsor, Blue-Wealth Assets, has provided Tk 30 million as its sponsor contribution, while the remaining Tk 270 million will be raised from general investors through the public offering of fund units.

The fund will issue units at a face value of Tk 10 each.

Blue-Wealth Assets will serve as the asset manager of the fund, while Sandhani Life Insurance Company will act as the trustee and Commercial Bank of Ceylon will serve as the custodian.

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