The Bangladesh Securities and Exchange Commission (BSEC) has granted approval for Jamuna Bank PLC and Pubali Bank PLC to issue bonds worth a total of Tk 1,300 crore.
BSEC said after 974th commission meeting on Tuesday, Jamuna Bank will issue bonds worth Tk 800 crore, while Pubali Bank will issue bonds worth Tk 500 crore. Both bonds will feature a 3% coupon margin on top of the reference rate.
They will be unsecured, non-convertible, redeemable, and floating-rate subordinated, issued through private placement to institutional investors and high-net-worth individuals, with each unit priced at Tk 5 lakh.
The funds raised will strengthen each bank’s Tier-2 capital base under Basel III regulations. DBH Finance PLC will serve as the trustee for both bonds, with UCB Investment Limited handling the arrangements.
Additionally, Pubali Bank’s bond issuance will also be supported by Prime Bank Investment Limited and IDLC Investment Limited.
