BSEC approves Tk 400 crore subordinated bond for Meghna Bank
The Bangladesh Securities and Exchange Commission (BSEC) has approved a proposal by Meghna Bank PLC to issue a Tk 400 crore seven-year subordinated bond to strengthen its capital base.
The approval was given at the 1026th commission meeting held today, chaired by BSEC Chairman Masud Khan, according to a BSEC press release.
The approved instrument is a non-convertible, unsecured, fully redeemable, coupon-bearing, floating-rate subordinated bond. Its coupon rate will be set at the reference rate plus a 3 percent margin.
The bond will be issued through private placement to corporate institutions, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies.
Each unit of the bond will have a face value of Tk 5 lakh.
According to the BSEC, proceeds from the bond issuance will be used to strengthen Meghna Bank's Tier-II capital base under Basel III.
DBH Finance PLC will act as the trustee of the bond, while BRAC EPL Investments Limited will serve as the issue manager.
The commission approved the proposal at its meeting held at the BSEC office today.
