Pubali Bank allowed to float bond worth Tk750 crore
The bond will mature seven years after it is issued. The listed commercial bank will strengthen its tier-two capital base with the money
The Bangladesh Securities and Exchange Commission (BSEC) has given approval to Pubali Bank Ltd to issue a non-convertible subordinated bond to collect Tk750 crore.
After its 703rd commission meeting on Thursday afternoon, the BSEC said in a press release that the non-listed bond will be issued through private placement among local institutional investors and qualified individual investors, which refers to high net worth individuals.
The bond will mature seven years after it is issued. The listed commercial bank will strengthen its tier-two capital base with the money.
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Face value of each of the bond units will be Tk7.5 crore.
The interest paid to investors will be determined at a floating rate, and no unit of the bond will be converted into issuers shares.
Green Delta Insurance Company Ltd is named as the trustee of the bond.
Pubali Bank was initially established as Eastern Mercantile Bank Limited in the then East Pakistan, and was nationalised after Bangladesh's liberation. In 1983, it became a private sector bank following bank denationalisation at that time.
It was listed at the Dhaka Stock Exchange in 1984 and now it is one of the largest private commercial banks with 473 branches. The bank also has the largest real-time centralised online banking network across the country.
Its paid-up capital is over Tk1028.29 crore and net profit in 2018 was Tk362.7 crore.
According to the National Credit Ratings Limited, the bank's credit rating for the long term is "A+" and "ST-1" for the short term.
