Two banks, steelmaker to raise Tk 895cr in bonds

Bangladesh Securities and Exchange Commission or BSEC yesterday allowed two banks and a steelmaker to raise Tk 895 crore by issuing bonds.

The banks will use the funds to fulfil their Basel-II requirements, while the other company will invest part of its fund in its power project.

The approvals came at a meeting of the stockmarket regulator, BSEC said in a statement.

IFIC Bank will issue subordinated bonds worth Tk 350 crore with a maturity period of seven years.

The per unit face value of the bond, which will be fully redeemable and coupon bearing, will be Tk 10 lakh with a 10-12 percent coupon rate.

Dhaka Bank will issue non-convertible, unlisted, fully redeemable and floating rated subordinated bonds worth Tk 300 crore. It will have a maturity period of seven years.

The face value of the bond per unit will be Tk 10 lakh with a 10-13 percent coupon rate. BSRM Steel will issue fully redeemable zero-coupon bonds worth Tk 300 crore.

The face value of the bond per unit will be Tk 1,000 with a discount rate of 9.5 percent. The regulator also gave a final nod to an amendment of the public issue rules; a gazette to this effect will be given soon.