11 commercial banks are being pressurized by Bangladesh Securities and Exchange Commission (BSEC) for listing the perpetual bonds.
The capital market regulator had a meeting with the top executives of the banks last week as it observed the indifference and sluggishness at the entrusted duty.
The 11 banks are- First Security Islami Bank, Exim Bank, Social Islami Bank, Standard Bank, NCC Bank, City Bank, Trust Bank, Mutual Trust Bank, One Bank, Jamuna Bank and United Commercial Bank.
Non-exclusion of listed bond investments into the banks’ capital market exposure, the reluctance of underwriters, mandatory provisioning against issued perpetual bonds, and high listing fees are among factors that are hindering the issuance and listing of the bonds.
To ensure the exchange trading of as many debt instruments as possible, the capital market regulator had asked the 11 issuer banks to directly list the bonds worth over Tk5,000 crore on the main trading platforms of the bourses after subscription.
Of the 11 perpetual bonds, approved by both the banking and capital market regulators, only four- The City Bank, Trust Bank, Mutual Trust Bank, and Jamuna Bank Ltd. secured the necessary investments to get the bond units sold.
Source: The Business Standard