Two banks to raise Tk1,600cr through bonds

Publicly listed Pubali Bank and Premier Bank will issue bonds worth Tk1,600 crore for strengthening their Tier-2 capital bases under Basel-III norms.

The issuance of the bonds needs to comply with the regulatory requirements and be approved by the authorities concerned.

Pubali Bank

The Pubali Bank has decided to raise Tk1,000 crore through issuance of a subordinated bond.

It wants to meet the requirements for Tier-2 capital to support the bank's Basel-III compliance as per the Bangladesh Bank's December 2014 guidelines on risk-based capital adequacy.

The Pubali Bank was listed on the Dhaka Stock Exchange (DSE) in 1984.

Sponsors and directors hold 31.50%, institutional investors 27.09%, foreign investors 0.23%, and general investors 41.18% of the bank's shares.

At the end of Thursday's trading session, its shares closed at Tk25.10 each at the DSE.

Premier Bank

The Premier Bank Limited has decided to issue a subordinated bond for raising Tk600 crore.

The seven-year tenure bond will be a non-convertible, unsecured, fully redeemable, and floating-rate subordinated bond.

The bank wants to strengthen Tier-2 capital under Basel-III norms through private placement.

The Premier Bank was listed on the stock exchanges in 2007.

Sponsors and directors hold 34.97%, institutional investors 23.35%, foreign investors 1.86%, and general investors 39.82% of the bank's shares.