The Bangladesh Securities and Exchange Commission (BSEC) has approved bond issuances worth Tk3,900 crore by five banks to strengthen capital bases and support green financing.
The approvals were given at BSEC’s 1,031st commission meeting on Tuesday, chaired by BSEC Chairman Masud Khan.
One Bank received approval to issue a Tk400 crore subordinated bond, while Southeast Bank was allowed to raise Tk800 crore through a similar bond.
Both bonds will be unsecured, non-convertible, fully redeemable and floating-rate, carrying coupon rates of reference rate plus 3 per cent. The bonds will be issued through private placement to institutional investors and high net worth individuals to strengthen Tier-II capital under Basel III.
BRAC Bank received approval for a Tk1,000 crore three-year unsecured, non-convertible, fully redeemable zero-coupon green bond. The proceeds will be used for low-cost green financing for eligible customers.
The bond will be privately placed among corporate entities, provident funds, gratuity funds, high net worth individuals and other eligible investors, with each unit carrying a face value of Tk10 lakh and a proposed discount rate of 8.5 per cent.
Al-Arafah Islami Bank was approved to issue a Tk500 crore seven-year subordinated bond, while Bank Asia received the approval for a Tk800 crore seven-year sustainable subordinated bond.
Both bonds will be unsecured, non-convertible and redeemable, with coupon rates of the reference rate plus 3 percentage points.
The proceeds will strengthen Tier-II capital under Basel III. Bank Asia’s bond will also finance or refinance eligible green and sustainable projects.
The approved bonds require listing on the main board of the stock exchange.
