5 banks to raise Tk2,000cr thru’ bond issuances

Staff Reporter :

Five commercial banks have received regulatory approval to issue subordinated bonds worth Tk 2,000 crore to strengthen their Tier-II capital base in line with Basel III norms.
The Bangladesh Securities and Exchange Commission (BSEC) granted consent for the bond issuances during its 932nd meeting, chaired by Khondoker Rashed Maqsood, according to a press release.
The approved bonds include Tk 400 crore each for Dhaka Bank PLC and Bank Asia PLC, Tk 500 crore for Islami Bank Bangladesh PLC, Tk 250 crore for EXIM Bank, and Tk 450 crore for Trust Bank Limited.
The boards of directors of these banks had previously decided to issue their fourth subordinated bonds. These bonds will be non-convertible, unsecured, fully redeemable, and will feature floating interest rates.
The face value of the bonds will vary: Dhaka Bank PLC’s bonds will have a face value of Tk 10 lakh, while Bank Asia PLC’s will be Tk 1 crore. The bonds issued by Islami Bank Bangladesh PLC, EXIM Bank, and Trust Bank Limited will each have a face value of Tk 5 lakh.
The funds raised from the bond issuance will be through private placement among institutional and high-net-worth individual investors. The proceeds will be used to strengthen the banks’ capital base in compliance with Basel III, an international regulatory framework aimed at improving risk management within the global banking sector.