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.
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The tenure of the bond will be seven years, carrying a coupon rate based on the reference rate plus a 3 percent margin. The face value per unit of the bond has been set at Tk 5,00,000.
Meghna Bank will issue the bond through private placement to corporate institutions, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies.
The proceeds from the bond issuance will be utilised by Meghna Bank PLC to strengthen its Tier-II Capital Base under the Basel III framework.
DBH Finance PLC will act as the trustee for the bond, while BRAC EPL Investments Limited will serve as the issue manager.