Bank Asia PLC has received approval from the Bangladesh Securities and Exchange Commission (BSEC) to raise Tk800 crore through a sustainable subordinated bond to strengthen capital and finance green and sustainable projects.
The approval was given at BSEC’s 1,031st commission meeting held on Tuesday.
The seven-year bond will be unsecured, non-convertible, fully redeemable and floating rate, carrying a coupon rate of reference rate plus 3 per cent.
The bond will be issued through private placement to institutional investors, high net worth individuals and other eligible investors.
Each unit will have a face value of Tk10 lakh.
The proceeds will be used to strengthen Bank Asia’s Tier-II capital base under Basel III and finance or refinance eligible green and sustainable projects.
DBH Finance PLC will act as trustee, while Prime Bank Investment PLC will serve as issue manager.
The bond will be listed on the main board of the stock exchange.
