The securities regulator has allowed Meghna Bank and Southeast Bank to issue subordinated bond worth Tk 5.0 billion each.
The approvals came in a meeting, held at the Bangladesh Securities and Exchange Commission (BSEC) office on Sunday.
In the meeting, the securities regulator also reduced the prohibition period of disbursing margin loans in case of upgrading 'Z' category companies.
As per the BSEC approval, Meghna Bank will raise capital worth Tk 5.0 billion through non-convertible, fully redeemable and coupon bearing subordinated bond to strengthen Tier-II capital base.
Of the amount, Tk 2.0 billion will be collected by issuing units of the bond through private placements.
To strengthen the Tier-II capital base, Southeast Bank will raise Tk 5.0 billion through non-convertible and floating rate subordinated bond.
The whole amount will be collected by issuing the bond through private placements.
Meanwhile, as per the existing rules, investors are not allowed to avail credit facilities within 30 trading sessions from the date of upgrading the 'Z' category companies.
In the meeting on Sunday, the securities regulator reduced the prohibition period to seven sessions from the existing 30 sessions.
If a 'Z' category company is shifted to 'B' or 'A' category, investors will not be allowed to avail credit facility within seven sessions of changing the company's category.
The other provisions of margin loans remained unchanged. Presently, investors are allowed to avail margin loans at 1:0.8 ratio.
In the meeting, the securities regulator also reduced the lowest bidding amount for the eligible investors to take part in the bidding of JMI Hospital Requisite MFG shares.
To take part in the bidding, the lowest bidding amount will be Tk 2.0 million instead of Tk 5.0 million.
The BSEC officials said they have taken the decision of revising the amount following a proposal of the Dhaka Stock Exchange (DSE).
