Southeast Bank allowed floating Tk500cr bond
Stocks
The securities regulator has given the go-ahead to Southeast Bank Limited to issue a non-convertible subordinated bond worth Tk500 crore.
The Bangladesh Securities and Exchange Commission (BSEC) granted the permission during a meeting at its office on Thursday.
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.
Southeast Bank 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.
The 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.
Southeast Bank was set up in 1995 and was listed on the Dhaka Stock Exchange in 2000.
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