Southeast, Meghna banks get BSEC nod to issue Tk700cr bonds
The Bangladesh Securities and Exchange Commission (BSEC) has approved Southeast Bank and Meghna Bank to collect Tk200 crore and Tk500 crore, respectively, by issuing bonds.
The two coupon bearing subordinated bonds are non-convertible and fully redeemable.
The coupon rates for the two bonds are between 7% (floor) and 9% (ceiling). The face value of each unit of the two bonds is Tk1 crore.
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According to a notification by the BSEC, Meghna Bank will issue bonds in favor of institutional investors and other eligible investors.
Through the issuance of this bond, the bank will strengthen its additional Tier-II capital base.
On the other hand, Southeast Bank will issue bonds to financial institutions, mutual funds, insurance companies, listed banks, corporate entities and other eligible investors.
The issuance of this bond also is aimed at strengthening the bank's additional Tier-II capital base, said the BSEC.
Tier-II is designated as the second or supplementary layer of a bank's capital and is composed of items such as revaluation reserves, hybrid instruments, and subordinated term debt.
