The proposal of issuing mudaraba subordinated bonds worth Tk 5 billion by the EXIM Bank has been approved by the securities regulator.
The approval was made on May 30 held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
The other characteristics of the bond are non-convertible, unsecured, and floating rate.
The funds will be utilised by the bank to strengthen its Tier-II capital base. The officer price of the bond is at Tk 10 million per unit.
The units of the bond will be distributed among financial institutions, mutual funds, insurers, listed banks, among others, through private placement.
Sena Kalyan Insurance Company and Standard Chartered Bank are working as trustee and arranger of the bond respectively.
During the meeting on May 30, the securities regulator had also decided to restructure the board of the Fareast Stocks and Bond, which is a brokerage firm of the Dhaka Stock Exchange (DSE).
The decision came in the backdrop of the company’s non-compliance with the regulatory instructions delivered earlier.
“The BSEC has decided to restructure the company’s board for the sake of the capital market and investors,” the BSEC officials said.