Meghna Bank to raise Tk 400cr thru subordinated bond

The Bangladesh Securities and Exchange Commission (BSEC) has approved a proposal by Meghna Bank PLC to issue a Tk 400 crore non-convertible, unsecured, fully redeemable, floating rate subordinated bond.

The approval was granted on Tuesday during the 1026th commission meeting presided over by BSEC Chairman Masud Khan at the BSEC headquarters in Dhaka.

The seven-year bond will be non-convertible, unsecured, fully redeemable, coupon-bearing, and carry a floating interest rate.

The coupon will be set at the applicable reference rate plus a 3 per cent margin.

The bond will be issued through private placement to corporate institutions, high-net-worth individuals, banks and financial institutions, provident and pension funds, and insurance companies.

Each unit will have a face value of Tk 5 lakh.

The issuance will help strengthen Meghna Bank’s Tier-2 capital in line with Basel III requirements.