DBBL allowed floating Tk500cr bond

Only local financial institutional investors, qualified individual investors, insurance companies, and corporate bodies can subscribe the bond

TBS Report

23 September, 2020, 10:05 pm

Last modified: 23 September, 2020, 10:09 pm

The Bangladesh Securities and Exchange Commission (BSEC) has given the go-ahead to Dutch-Bangla Bank Limited (DBBL) to issue an unsecured non-convertible subordinated bond worth Tk500 crore.

The securities regulator granted the permission during a meeting at its office on Wednesday.

However, the BSEC gave the approval on the condition of including the bond in the alternative trading board of both stock exchanges.

Through private placement, the bond can only be issued to local financial institutional investors, qualified individual investors, insurance companies, and corporate bodies.

Dutch-Bangla Bank Limited will strengthen its tier-two capital base with the money.

The face value of each unit of the bond will be Tk1 lakh and it will be completely redeemable in seven years.

Investors will get money at a floating rate and no unit of the bond will be converted into issued share.

Green Delta Insurance Company Limited has been named as the trustee of the bond and Standard Chartered Bank as the mandated lead arranger for the company.

Dutch-Bangla Bank Limited got listed in the capital market in 2001.

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