Five scheduled banks in Bangladesh received approval from the Bangladesh Securities and Exchange Commission (BSEC) on November 19 to raise Tk 2,000 crore through bonds to enhance their capital base. Islami Bank plans to issue Tk 500 crore through fifth mudaraba unsecured, non-convertible, fully redeemable, floating-rate subordinated bonds. Trust Bank will raise Tk 450 crore via similar subordinated bonds, with both offering a coupon rate based on the six-month treasury bill average plus an additional 3%. The face value for each bond unit is Tk 5 lakh.
Dhaka Bank and Bank Asia will issue Tk 400 crore each through unsecured, non-convertible, floating-rate bonds, with unit face values set at Tk 10 lakh and Tk 1 crore, respectively. Exim Bank plans to raise Tk 250 crore via unsecured, redeemable, floating-rate subordinated bonds at the same coupon rate. These subordinated bonds are not backed by assets, cannot convert to shares, and are prioritized lower in claims on earnings or assets.
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