BSEC approves Mercantile Bank’s Tk500cr bond
The bond’s face value per unit will be Tk5,000 and the coupon rate will be 6%-10%
The Bangladesh Securities and Exchange Commission (BSEC) approved the issuance of a Tk500 crore perpetual bond by Mercantile Bank.
The bank will issue the bond to strengthen its additional Tier-I capital base.
Local institutional investors and high-net-worth individuals can buy the bond units through a private placement, while general investors will be able to get it through a public offering.
Of the bond value, Tk450 crore will be issued through the private placement and the remaining Tk50 crore through the public offering.
The face value per unit of the bond will be Tk5,000. The coupon rate will be 6%-10%.
A coupon payment refers to the annual interest paid on a bond between its issue date and the date of maturity.
Local merchant bank UCB Investment Ltd will act as the trustee of the bond while IDLC Finance Ltd will be its arranger.
IDLC Investments Limited will be the issue manager.
