BSEC allows PGCB to issue 25cr shares to BPDB

Staff Correspondent | Published: 00:00, Nov 28,2019


The Bangladesh Securities and Exchange Commission on Wednesday approved issuance of 25.18 crore shares by Power Grid Company of Bangladesh against Tk 251.81 crore investment of Bangladesh Power Development Board.

The regulator made the decision at a commission meeting presided over by its chairman M Khairul Hossain, a BSEC press release said.

The regulator approved the issuance of the ordinary shares other than cash consideration against existing investment (investment of the BPDB as deposit for shares) in line with the vendors’ agreement, it said.

In 2002 and 2007, the BPDB transferred to the PGCB electricity transmission line, rehabilitation, renovation and augmentation of grid substation, vehicle and other transmission infrastructure assets worth Tk 251.81 crore, it said.

The PGCB will now convert the investment into capital amid issuance of shares. The regulator also approved the paid up capital increase by Tk 25.18 crore of the PGCB.

The BSEC also said that the 25.18 crore shares would remain locked-in as strategic investment and the shares could not be transferred or trade without prior approval of the commission.

The BSEC at the meeting also allowed Islami Bank Bangladesh Limited to float non-convertible subordinated bond worth Tk 600 crore.

As per the BSEC approval, the nature of the bond will be unsecured non-convertible floating rate subordinated bond.

The face value of each unit of the bond will be Tk 1 crore and the bond will be fully redeemable in seven years.

Only corporate bodies, 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 Tier-II capital base.

Green Delta Insurance acts as the trustee for the bond while Standard Chartered Bank is the mandated lead arranger for the bond.

The regulator at the meeting also approved the draft securities and exchange rules, 2019 after making some changes to the existing securities and exchange rules, 1987.

The draft rules will be published in the daily newspapers and the BSEC web site, seeking public opinions.

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