The Bangladesh Securities and Exchange Commission (BSEC) has approved bond issuance proposals by BRAC Bank PLC, United Commercial Bank PLC, and Trust Bank PLC, totaling Tk2,300 crore.
The decision was made during the 975th Commission Meeting, chaired by BSEC Chairman Khondker Rashed Maqsood on Tuesday.
BRAC Bank will raise Tk1,000 crore, UCB will issue bonds worth Tk800 crore, and Trust Bank will issue Tk500 crore.
The coupon rate for BRAC Bank’s bond will be the reference rate plus a 2.5% coupon margin, while for the two other banks, it will be the reference rate plus a 3% coupon margin.
All three banks have been granted approval to issue unsecured, non-convertible, redeemable, floating rate subordinated bonds through private placement to institutional investors.
Each bond will be listed on the Alternative Trading Board. The bonds are aimed at strengthening the respective banks’ Tier-II Capital Base under Basel III.
The bonds will be issued at unit prices of Tk10 lakh by BRAC Bank’s bond and Tk1 lakh by UCB and Trust Bank’s bonds.
DBH Finance PLC will act as the trustee for UCB and Trust Bank’s bonds, while Prime Bank Investment Limited will serve as the trustee for BRAC Bank’s bond.
BRAC EPL Investment Limited will be the arranger for BRAC Bank’s bond, while UCB Investment Limited will assist in raising funds for its parent company, UCB.
UCB Investment and Trust Bank Investment Limited will be the arranger for the Trust Bank bond.
