Four listed banks will raise an aggregate amount of Tk 21 billion by issuing bonds to strengthen their Tier-II capital base.
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday approved the banks' proposals for issuing bonds each having a tenure of seven years.
According to the BSEC approval, Islami Bank Bangladesh Limited (IBBL) will issue a Mudaraba bond worth Tk 7.0 billion.
The fully redeemable bond will be non-convertible, non-listed and unsecured with floating rate.
The bond will be issued to different financial institutions, insurance companies, foreign financial institutions, corporate entities, and high net worth individuals through private placements.
Social Islami Bank Limited (SIBL) will raise a fund worth Tk 5.0 billion through Mudaraba redeemable non-convertible subordinated bond.
The bond will be issued to different financial institutes, insurance companies, corporate entities and high net worth individuals via private placements.
The features of the SIBL bond will be same of that of the Islmai Bank.
Duthch-Bangla Bank Limited (DBBL) will issue floating rate non-convertible subordinated bond worth Tk 5.0 billion.
The bond will be non-convertible, fully redeemable, unsecured and non-listed with floating rate.
The bank will issue the bond to different financial institutions, insurance companies, corporate entities and high net worth individuals.
One Bank Limited will issue subordinated floating rate bond worth Tk 4.0 billion.
The bond will be issued to different financial investors and high net worth individuals.
The characteristics of the bond will be same as those of other issuing banks.
At Thursday's meeting, the securities regulator also approved the proposal of Esquire Knit Composite to launch the initial public offering (IPO) under book building method to raise capital amounting to Tk 1.50 billion.
As per the BSEC approval, Esquire Knit Composite will offload more than 34.89 million shares under book building method.
Of 34.89 million shares, over 20.83 million will be issued to eligible investors at Tk 45 each, the cut-off price.
The remaining 10.46 million shares will be issued to general investors, including non-resident Bangladeshis, priced at Tk 40 each.
The company's IPO proceeds will be used for purchasing machinery, building construction and civil works, and also to meet the IPO expenses.
The company's weighted earnings per share (EPS) was Tk 2.52 and net asset value (NAV) per share (with revaluation reserve) Tk 45.83 at the end of June 30, 2017.
The securities regulator also approved the draft prospectus of HFAML ACME Employees Unit Fund.
The initial size of the fund will be Tk 200 million. The sponsors will contribute Tk 50 million, while the remaining Tk 150 million will be collected from general investors through sales of units.
The offer price of the units of HFAML ACME Employees Unit Fund is Tk 10 each.
The AMCE Laboratories Limited Employees Provident Fund is the sponsor of the fund, while HF Asset Management is the fund manager.
The securities regulator also approved the proposal for converting ICB AMCL second NRB mutual fund into open-ended fund.
