Trading of Pubali Bank Perpetual Bond, the sixth listed on the Dhaka Stock Exchange (DSE) debt board, is scheduled to begin in the capital market on Thursday.
The Bangladesh Securities and Exchange Commission (BSEC) on 7 December last year approved the bank to issue a perpetual bond worth Tk500 crore, of which Tk50 crore is allocated for general investors through an initial public offering (IPO), and the local institutional investors and high-net-worth individuals have bought the rest.
The listed commercial bank will strengthen its additional Tier-1 capital base with the money collected, according to the BSEC. Tier-1 capital is the core capital a bank holds in its reserves and exists as the primary source of funds.
The perpetual bond would be an unsecured, contingent-convertible, fully paid-up, non-cumulative, and Basel-III compliant.
The coupon rate will be 6% to 10% of the bond. The minimum subscription amount of the bond was Tk5,000.
Local merchant bank Green Delta Capital Limited acted as the trustee of the bond while UCB Capital Limited and City Bank Capital Resources Limited were the arrangers, issue managers, and underwriters of the bond.
Pubali Bank was listed on the capital market in 1984.
From January to September 2021, the bank logged a consolidated profit of Tk465.21 crore, and its earnings per share (EPS) stood at Tk4.52.
Currently, the company's shares are trading at their peak price in the last two years. At the end of Wednesday's trading session, its shares closed at Tk30.1 on the DSE.