IFIC Bank to issue Tk500cr bond
The coupon rate of this subordinate bond will be a minimum of 7.5% and a maximum of 10.5%
IFIC Bank Ltd, a private sector lender, has received approval to issue a Tk500 crore bond through the private placement to strengthen its Tier-2 capital base.
The Bangladesh Securities and Exchange Commission (BSEC) approved the bond proposal on Wednesday.
According to a press release issued by the commission, the coupon rate of this subordinate bond will be a minimum of 7.5% and a maximum of 10.5%.
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The per-unit face value of the bond will be Tk1 crore.
The bond will be issued through the private placement to financial institutions, mutual funds, insurance companies, listed banks, cooperative banks, regional rural banks, organisations, trusts, autonomous corporations, and other eligible investors.
The trustee of the bond is Sena Kalyan Insurance Company Ltd while Standard Chartered Bank is the arranger.
IFIC Bank was listed on local stock exchanges in 1986.
In 2020, the lender posted a profit of Tk113.30 crore and paid a 5% stock dividend to its shareholders.
According to the Dhaka Stock Exchange (DSE), the board of IFIC Bank has decided to issue a perpetual bond with the value of Tk1,000 crore as additional Tier-1 capital to support the bank under BASEL III norms complying with the Bangladesh Bank guidelines on risk-based capital adequacy.
The bank will hold an extraordinary general meeting on 26 August to get the approval of the shareholders and concerned regulatory authorities.
