The trading of Premier Bank's perpetual bond, the fifth listed on the Dhaka Stock Exchange (DSE) debt board, is scheduled to begin in the capital market from Monday (9 January).
Of the remaining perpetual bonds – two issued by the Islami Bank and one each by the Shahjalal Islami Bank and the Al-Arafah Islami Bank are also being traded on that board.
Earlier, in November last year, the securities regulator approved the Premier Bank to raise Tk200 crore through issuing the perpetual bond.
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 unsecured, contingent-convertible, fully paid-up, non-cumulative and Basel-III compliant.
Local institutional investors and high-net-worth individuals bought 90% of the bond through a private placement. General investors got the rest of the units through a public offering.
The coupon rate has been set at 6%-10% of the bond. The minimum subscription amount of the bond, both private placement and public offer, was 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.
On Sunday, its shares closed at Tk15.10 each on the DSE.
As of 30 November, last year, sponsors and directors jointly held 34.97%, institutions 19.51%, foreign investors 1.95%, and general investors 43.57% of the company shares.