BSEC makes mandatory bank perpetual bonds’ trading on bourses’ main boards

Tk 400cr bonds each of ONE Bank, MTB okayed

Staff Correspondent | Published: 23:11, Jul 05,2020


The Bangladesh Securities and Exchange Commission on Sunday made mandatory listing of perpetual bonds issued by the banks as tradable securities on the main platforms of stock exchanges.

The stock market regulator will soon frame necessary rules for listing of the banks’ perpetual bonds and allow their trading on the main boards.

The BSEC made the decision at a commission meeting, presided over by its chairman Shibli Rubayat-Ul-Islam, held on Sunday, said a BSEC press release.

The commission at the meeting also allowed ONE Bank and Mutual Trust Bank to float non-convertible perpetual bonds worth Tk 400 crore each.

The banks will float the bonds, which would be unsecured nonconvertible, Basel III compliant perpetual and floating rate bonds.

The face value of each unit of the bonds of the two banks will be Tk 10 lakh and coupon rate will be 11-14 per cent. Only banks, financial institutions, corporate institutions and other eligible investors will be allowed to subscribe the bonds through private placement.

The purpose of the issue is to strengthen the bank’s additional Tier-I capital base.

EBL Investmet Limited is acting as the trustee of the two banks while City Bank Capital Resources Limited is the lead arranger for both the bonds and MTB Capital Limited will also be the lead arranger of MTB’s bond.

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