BSEC approves Tk 3,500cr bonds for five banks

The Bangladesh Securities and Exchange Commission (BSEC) today approved proposals for issuing bonds worth a combined Tk 3,500 crore by five banks to strengthen their capital base and support green and sustainable financing.

The approvals were given at the 1,031st commission meeting held at the BSEC office with its Chairman Masud Khan in the chair.

Of the approved proposals, One Bank PLC will issue a Tk 400-crore unsecured, non-convertible, fully redeemable, floating-rate subordinated Bond-VI through private placement. Its coupon rate will be the reference rate plus 3 percent.

The bond will have a face value of Tk 1 lakh per unit and will be offered to institutional investors and high-net-worth individuals. The proceeds will be used to strengthen the bank’s Tier-2 capital base under Basel III.

Green Delta Capital Limited will act as trustee and UCB Investment Limited as issue manager. The bond will have to be listed on the main board of a stock exchange.

The commission also approved Southeast Bank PLC’s Tk 800-crore, seven-year subordinated bond. The fully redeemable, non-convertible and unsecured floating-rate bond will carry a coupon rate of reference rate plus 3 percent.

The bond, with a face value of Tk 5 lakh per unit, will be issued through private placement to institutional investors and high-net-worth individuals to strengthen the bank’s Tier-2 capital base under Basel III.

DBH Finance PLC will serve as trustee and UCB Investment Limited as issue manager, while the bond will be listed on the main board.

BRAC Bank PLC received an approval to issue Tk 1,000-crore, three-year unsecured, non-convertible, fully redeemable, zero-coupon green bond at a proposed discount rate of 8.5 percent.

The bond, with a face value of Tk 10 lakh per unit, will be privately placed with corporate entities, provident and gratuity funds, high-net-worth individuals and other eligible investors.

The proceeds will be used to provide low-cost green financing to eligible customers of BRAC Bank. Prime Bank Investment PLC will act as trustee and IDLC Investments Limited as issue manager. The bond will also be listed on the main board.

Al-Arafah Islami Bank PLC’s proposal for a Tk 500-crore, seven-year unsecured, non-convertible, redeemable, floating-rate subordinated bond was also approved.

The coupon rate of the AIBPLC 5th Subordinated Bond will be reference rate plus 3 percent. It will be issued through private placement to institutional investors and high-net-worth individuals, with a face value of Tk 5 lakh per unit.

The proceeds will be used to strengthen the bank’s Tier-II capital base under Basel III. DBH Finance PLC will be the trustee and UCB Investment Limited the issue manager.

The commission also approved Bank Asia PLC’s Tk 800-crore, seven-year unsecured, non-convertible, fully redeemable, floating-rate and sustainable subordinated bond.

The bond will carry a coupon rate of reference rate plus 3 percent and have a face value of Tk 10 lakh per unit. It will be privately placed with institutional investors, high-net-worth individuals and other eligible investors.

The proceeds will be used to strengthen Bank Asia’s Tier-II capital base under Basel III and finance and refinance eligible green and sustainable projects.

DBH Finance PLC will act as trustee and Prime Bank Investment PLC as issue manager. The bond will have to be listed on the main board of a stock exchange.

Meanwhile, the commission decided to give no-objection to the formation of a proposed nine-member board of directors of Beximco Pharmaceuticals PLC, considering the interests of investors and overall circumstances, following a letter from its panel lawyer regarding an oral direction of the court.

The proposed board will comprise three sponsor directors -- ASF Rahman, Osman Kaiser Chowdhury and Iqbal Ahmed -- a managing director to be newly appointed, one director from local financial institution IFIC Bank PLC, and four independent directors, including one female independent director, in compliance with the Corporate Governance Code, 2018.

The commission also decided that its earlier orders dated December 31, 2024 and January 15, 2026 concerning the company would be withdrawn subject to withdrawal of the case by the company.