City Bank allowed to float Tk 300cr bonds

Staff Correspondent | Published at 10:26pm on February 25, 2020

The Bangladesh Securities and Exchange Commission on Tuesday allowed City Bank to float non-convertible zero coupon bonds worth Tk 300 crore on the market.

The capital market regulator gave the approval at a commission meeting presided over by its chairman M Khairul Hossain.

As per the BSEC approval, the bank will float the bonds that will include unsecured nonconvertible, unsecured and zero coupon bonds.

The face value of each unit bond will be Tk 5,000 and the bond will be fully redeemable in three years’ time.

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 capital base.

SBL Capital Management Limited is to act as the trustee for the bond while City Bank Capital Resources Limited is the lead arranger for the bond.