The Investment Corporation of Bangladesh (ICB), which is one of the largest investors in the capital market, has decided to issue a subordinated bond worth Tk 20 billion.
“The board of directors of Investment Corporation of Bangladesh has decided to issue ICB Subordinated Bond of Tk 20 billion for 7 years, including 2 years grace period (redeemable),” said a statement posted on the Dhaka Stock Exchange (DSE) website on Sunday.
However, the issuance of the bond is subject to the approval from Bangladesh Securities and Exchange Commission (BSEC) and other regulatory authorities, the disclosure said.
Some of the core features of the bond are as follows: the name of the bond is ICB Subordinated Bond, Issuer: Investment Corporation of Bangladesh (ICB), Fund Size: Tk 20 billion, the type of the bond is coupon bearing, non-convertible redeemable and subordinated.
Mode of Placement: Private Placement, Listing Status: Non-Listed, Face Value & issue Value per unit: Tk 10 million only. Minimum Subscription: For Individual: 1 Bond valuing Tk 10 million only and for institution: 5 Bonds valuing Tk 50 million only.
Late Redemption Interest: Extra 2.0 per cent (Yearly Basis), Bond Duration: 7 Years (including first 2 years grace period).
Interest Rate: 9.0 per cent (Yearly Basis), Interest Payment: 6 Months Basis, Income Tax: Source Tax will be deducted, Transfer: Transferrable.
Each share of the state-run company, which was listed on the Dhaka bourse in 1977, closed at Tk 144.60 on Thursday last.
The company disbursed 30 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2017.
ICB’s paid-up capital is Tk 6.64 billion and authorised is Tk 10 billion. Its total number of securities is 664.45 million.
The sponsor-directors own 69.81 per cent stake in the company, while the government owns 27 per cent, institutional investors 1.44 per cent and the general public 1.75 per cent as on February 28, 2018, the DSE record shows.
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