Pubali Bank got regulatory permission to issue subordinated bonds worth Tk 4 billion for strengthening its Tier- II capital base under Basel-III norms.
The Bangladesh Securities and Exchange Commission (BSEC) gave its consent on Tuesday for the issuance of the bonds, according to a press release.
Earlier, the board of directors of Pubali Bank took the decision to issue its 4th subordinated bonds. Bonds to be issued will be non-convertible, unsecured, fully redeemable, and will have floating rates.
The face value of the bonds will be Tk 1 million each.
The interest rate will be a reference rate plus a 3 per cent coupon margin. The reference rate is the six-month average of FDRs (fixed deposit receipts) of private commercial banks, excluding fourth-generation and Shariah-compliant lenders.
Subordinated debt (debenture) is a loan or security that ranks below other loans or securities when it comes to settling claims on assets or earnings.
Pubali Bank will issue the bonds to strengthen its capital base to meet the requirements for Tier- II capital base to support the bank’s Basel-III compliance as per the Bangladesh Bank’s December 2014 guidelines on risk-based capital adequacy.
Institutional investors and highly noteworthy individuals will be able to invest in the bonds.
The trustee of the bonds is DBH Finance and the arranger is UCB Investment Limited.
The bonds will be traded at the Alternative Trading Board. thefinancialexpress.com.bd
