Trading of Pubali Bank Perpetual Bond will commence on the Dhaka Stock Exchange and Chittagong Stock Exchange today (Thursday) under settlement category 'N'.
The DSE trading code for Pubali Bank Perpetual Bond is "PBLPBOND" and company code is 26010 while the CSE scrip code is "PBLPBOND" and the scrip ID is 40014.
The reference price shall be Tk 5000 and the circuit breaker (price limit) shall remain operative from the first trading day, according to a filing with the CSE on Wednesday.
A perpetual bond is a fixed income security with no maturity date and is often considered as a type of equity rather than debt. These types of bonds are not redeemable but instead provide a never-ending stream of interest payments.
Pubali Bank, a listed private commercial bank, raised Tk 5.0 billion through issuance of Perpetual Bond for raising additional Tier-l capital through issuance of Pubali Bank Perpetual Bond.
Out of Tk 5.0 billion, the bank raised Tk 4.50 billion (90 per cent) through private placements and the remaining Tk 500 million (10 per cent) through public offer, as per the regulatory approval.
Bangladesh Securities and Exchange Commission (BSEC) accorded its consent to the bank for raising additional Tier-l capital through issuance of the bond worth Tk 5.0 billion on December 7, 2021.
Green Delta Capital is the trustee of the bond, while City Bank Capital Resources and UCB Investment are working as arranger, issue manager and underwriter of the bond.
The bond is unsecured, contingent-convertible, fully paid-up, non-cumulative and BASEL III-compliant. The coupon rate will be 6.0 per cent to 10 per cent of the bond.
Each share of the Pubali Bank, which was listed on the DSE in 1984, closed at Tk 30.10 on Wednesday, losing 0.33 per cent over the previous day.
The bank's consolidated earnings per share (EPS) stood at Tk 4.52 for January-September 2021 as against Tk 2.94 for January-September 2020.
The bank's paid-up capital is Tk 10.28 billion and authorized capital is Tk 20 billion while total number of the securities is 1.02 billion.
The bank's sponsor-directors hold 31.50 per cent shares, institutes 27 per cent, foreigners 0.23 per cent and general public 41.27 per cent as on February 28, 2022.
According to the BSEC (Debt Securities) Rules, 2021 and directive issued on May 23, 2021, if an issuer intends to raise debt capital through issuance of perpetual bond, it shall make a public offer for at least 10 per cent of its intended offer and must be listed on the bourses.
Previously, the perpetual bonds were issued only through private placement and they were not tradable at the stock market.
