The securities regulator has given approval to Premier Bank Ltd to issue a perpetual bond worth Tk200 crore.
The listed commercial bank will strengthen its additional Tier-1 capital base with the money collected this way, according to the Bangladesh Securities and Exchange Commission (BSEC).
This bond would be an unsecured, contingent-convertible, fully paid-up, non-cumulative and Basel-III compliant, the regulator said on Tuesday.
Local institutional investors and high-net-worth individuals can buy the bond units through a private placement. General investors can also buy units through a public offering.
Some Tk180 crore will be issued through private placement and the remaining Tk20 crore through a public offering.
The coupon rate will be 6%-10% of the bond. The minimum subscription amount of the bond, both private placement and public offer, will be Tk5,000.
Local merchant bank MTB Capital Ltd will act as the trustee of the bond, while another investment bank UCB Capital Limited will act as issue manager, an underwriter of the bond.
Premier Bank was listed on the capital market in 2007.
From January to September 2021, the bank logged a profit of Tk232.39 crore, and its earnings per share stood at Tk2.23.
As of 31 October this year, sponsors and directors jointly held 34.97%, institutes 21.60%, foreign investors 2.05%, and general investors 41.38% of the company shares.