UCB gets BSEC nod to issue Tk400 crore perpetual bond
Investors will receive 8-10% interest against the bond
The Bangladesh Securities and Exchange Commission (BSEC) gave the go-ahead to the United Commercial Bank (UCB) to issue a perpetual bond worth Tk400 crore.
The securities regulator approved the bond during its 753rd commission meeting on Tuesday.
The meeting was headed by BSEC Chairman Professor Shibli Rubayat-Ul-Islam.
Investors will receive 8-10% interest against the bond, and face value of the bond units will be Tk10 lakh each.
The bond proceeds will strengthen the Tier-1 capital base of the listed commercial bank.
Institutional and other qualified investors will be offered the bond units in private placement.
MTB Capital, a local investment bank, will act as the trustee of the bond, while leading non-bank financial institution, IDLC Finance, is working as the mandated lead arranger for the bond.
In August, bond issuer UCB received AA in long-term credit rating, and ST-2 in short-term rating from local rating agency - Emerging Credit Rating Limited.
