Al-Arafah Islami Bank PLC has received regulatory approval to raise Tk500 crore through a seven-year subordinated bond to strengthen its Tier-II capital base under Basel III.
The Bangladesh Securities and Exchange Commission (BSEC) approved the AIBPLC 5th Subordinated Bond at its 1,031st commission meeting on Tuesday.
The unsecured, non-convertible and redeemable floating-rate bond will carry a coupon rate of reference rate plus 3 per cent.
The bond will be issued through private placement to institutional investors and high net worth individuals.
Each unit will have a face value of Tk5 lakh.
DBH Finance PLC will serve as trustee, while UCB Investment Limited will act as issue manager.
