The Bangladesh Securities and Exchange Commission has approved Meghna Bank PLC’s proposal to raise Tk 400 crore through a subordinated bond, aimed at strengthening the bank’s capital base.
The approval came at the 1,026th commission meeting held on Tuesday, chaired by BSEC chairman Masud Khan, according to a press release signed by executive director and spokesperson Md Abul Kalam.
The seven-year bond will be non-convertible, unsecured, fully redeemable, coupon-bearing, and carry a floating interest rate.
The coupon will be set at the applicable reference rate plus a 3 per cent margin.
The bond will be issued through private placement to corporate institutions, high-net-worth individuals, banks and financial institutions, provident and pension funds, and insurance companies. Each unit will have a face value of Tk 5 lakh.
The issuance will help strengthen Meghna Bank’s Tier-2 capital in line with Basel III requirements.
DBH Finance PLC will serve as trustee, whilst BRAC EPL Investments Limited will act as the issue manager.
