Published at: New Age, MArch 06, 2019
Bangladesh Securities and Exchange Commission on Tuesday allowed AB Bank Limited to float non-convertible subordinated bond worth Tk 500 crore.
The capital market regulator gave the approval at a commission meeting presided over by its chairman M Khairul Hossain.
As per the BSEC approval, the bank will float unsecured non-convertible floating rate subordinated bond worth Tk 500 crore.
The face value of each unit of the bond will be Tk 1 crore and the bond will be fully redeemable in seven years.
Only corporate bodies, financial institutions, corporate institutions and other eligible investors will be allowed to subscribe the bonds through private placement.
The purpose of the issue is to strengthen the bank’s capital base and meet its capital requirement under Tier-II.
MTB Capital Limted acts as the trustee for the bond while RSA Capital Limited is the mandated lead arranger for the bond.
The regulator at the meeting also approved drafted alternative investment rules, 2016 after making some changes.
The drafted rules will be published in the daily newspapers to seek public opinion.
The commission made the approach to diversify and increase the depth of the market in accordance with its earlier plan, BSEC officials said.
The market has been remained vulnerable due to lack of depth and products. Investors have to invest in the same securities, which increases or drags down share prices irrationally. Product diversification was the only way to cater to investors’ need, they said.