BSEC approves Tk3,500cr bonds from five banks

The Bangladesh Securities and Exchange Commission (BSEC) has approved bond proposals worth a combined 3,500 crore taka from five banks, mainly to strengthen their regulatory capital and support green and sustainable financing.

The approvals were given at the commission's 1,033rd meeting on Tuesday.

One Bank PLC received approval to issue an Tk400-crore, five-year unsecured, non-convertible, fully redeemable floating-rate subordinated bond. The bond will carry a coupon of Reference Rate +3 per cent and will be used to strengthen the bank's Tier-II capital under Basel III.

Southeast Bank PLC received approval for an Tk800-crore, seven-year fully redeemable, non-convertible and unsecured floating-rate subordinated bond, carrying a coupon of Reference Rate +3 per cent. The bond will also strengthen the bank's Tier-II capital under Basel III. 

BRAC Bank PLC received approval for a Tk1,000-crore, three-year unsecured, non-convertible, fully redeemable zero-coupon green bond.

The proceeds will be used for low-cost green financing, according to the BSEC decision. 

Al-Arafah Islami Bank PLC received approval for a Tk500-crore, seven-year unsecured, non-convertible and redeemable floating-rate AIBPLC 5th Subordinated Bond. Its coupon rate will be Reference Rate +3 per cent, with the proceeds to strengthen the bank's Tier-II capital under Basel III.

The regulator also approved an Tk800-crore, seven-year unsecured, non-convertible, fully redeemable floating-rate and sustainable subordinated bond for Bank Asia PLC.

The Bank Asia bond will carry a coupon of Reference Rate +3 per cent. The proceeds will be used to strengthen Tier-II capital and finance eligible green and sustainable projects.