Mercantile Bank will raise a capital worth Tk 5.0 billion through issuing perpetual bond to strengthen its capital base under additional tier-I.
The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the company's proposal of bond issue at a meeting held at the BSEC office.
Of Tk 5.0 billion, Tk 4.5 billion will be raised issuing the units of bond through private placements.
The units of remaining Tk 500 million will be issued through initial public offer (IPO).
The offer price of the bond of Mercantile Bank will be Tk 5,000 per unit.
The bond will be issued to financial institutions, mutual funds, insurers, listed banks, local rural banks, trusts, organisations, autonomous bodies and eligible and general investors.
UCB Investment is the trustee of the bond, while IDLC Finance is the lead arranger and IDLC Investments is the issue manager.
