BSEC approves Tk600cr bond for Brac Bank
The private sector lender will use the fund as a home loan among the lower and middle-class people of the country
Brac Bank on Thursday received approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue a Tk600 crore non-convertible, fixed coupon senior bond.
Senior bond is borrowed money that a company must repay first if it goes out of business.
The private sector lender will use the bond proceedings as a home loan among the lower and middle-class people of the country.
Keep updated, follow The Business Standard's Google news channel
The bond will be redeemed in five years.
The lender will raise Tk425 crore from international investors and the rest Tk175 crore from local institutional investors such as non-banking financial institutions, insurers, banks, and asset management firms through private placements.
IDLC investments Ltd is the trustee of the bond while Brac Bank itself is working as its mandated lead arranger.
The current paid-up capital of Brac Bank, which got listed on the capital market in 2007, is Tk1,392 crore.
Till 30 September this year, sponsors and directors jointly held 46.24%, institutions 11.84%, foreign investors 35.61, and general investors 6.31% shares in the company.
