Two banks to raise Tk1,600cr through bonds
Pubali Bank and Premier Bank to issue bonds for strengthening their Tier-2 capital bases
Publicly listed Pubali Bank and Premier Bank will issue bonds worth Tk1,600 crore for strengthening their Tier-2 capital bases under Basel-III norms.
The issuance of the bonds needs to comply with the regulatory requirements and be approved by the authorities concerned.
Pubali Bank
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The Pubali Bank has decided to raise Tk1,000 crore through issuance of a subordinated bond.
It wants to meet the requirements for Tier-2 capital to support the bank's Basel-III compliance as per the Bangladesh Bank's December 2014 guidelines on risk-based capital adequacy.
The Pubali Bank was listed on the Dhaka Stock Exchange (DSE) in 1984.
Sponsors and directors hold 31.50%, institutional investors 27.09%, foreign investors 0.23%, and general investors 41.18% of the bank's shares.
At the end of Thursday's trading session, its shares closed at Tk25.10 each at the DSE.
Premier Bank
The Premier Bank Limited has decided to issue a subordinated bond for raising Tk600 crore.
The seven-year tenure bond will be a non-convertible, unsecured, fully redeemable, and floating-rate subordinated bond.
The bank wants to strengthen Tier-2 capital under Basel-III norms through private placement.
The Premier Bank was listed on the stock exchanges in 2007.
Sponsors and directors hold 34.97%, institutional investors 23.35%, foreign investors 1.86%, and general investors 39.82% of the bank's shares.
