Dhaka, Bangladesh (BBN) – Bangladesh Securities and Exchange Commission (BSEC) on Wednesday allowed Bank Asia and Premier Bank to raise fund by issuing bonds worth BDT 5.0 billion each.
The approval came at a meeting of the Bangladesh’s securities regulator presided over by its Chairman M Khairul Hossain held in capital city Dhaka.
BANK ASIA: As per the BSEC approval, the Bank Asia will issue BDT 5.0 billion non-convertible subordinated bond having tenure of seven years to meet its tier-II capital requirement.
Only local financial institutions, insurance companies, corporate bodies and high net worth individuals will be allowed to purchase the bond to be issued by Bank Asia.
The bank, which was listed on the Dhaka bourse in 2004, belongs to the “A” category.
The company’s paid-up capital is BDT 8,812.60 million and authorised capital is BDT 15,000 million while total number of securities is 881,259,910, according to DSE figures.
The sponsor-directors own 45.32 percent stake in the Bank Asia, while institutional investors own 36.35 percent, foreign 0.40 percent and the general public 17.93 percent.
Each share of Bank Asia closed at BDT 17.90 on Wednesday.
PREMIER BANK: As per the regulatory approval, Premier Bank will issue non-convertible bond worth BDT 5.0 billion to strengthen the capital base of the Bank.
The tenure of the bond will five years, whereas the bond’s characteristics will be un-listed, fully redeemable and fixed rated coupon bearing subordinated.
The bank, which was listed on the Dhaka bourse in 2007, belongs to the “A” category.
The bank’s paid-up capital is BDT 6,820.81 million and authorised capital is BDT 10,000 million while total number of securities is 682,081,073, according to DSE data.
The sponsor-directors own 33.93 percent stake in the Bank, while institutional investors own 19.79 percent and the general public 46.28 percent.
Wednesday’s closing price of each share of the bank was BDT 9.10.
At Wednesday’s meeting, the BSEC also approved the proposal of raising capital worth above BDT 3.12 billion by United Airways for the purpose of purchasing seven aircrafts.
According to the BSEC approval, United Airways will issue above 312.80 million shares of BDT 10 each to six institutions which will provide seven aircrafts and three engines. The shares worth above BDT 3.12 billion will be issued through private placements.
The companies which will provide aircrafts by receiving shares and cash as well are: Swift Air Cargo, Sterling Aerospace, A-Sonic Aviation Solutions, Singapore, Arctic Tern Aviation Private Limited, Singapore, Phoenix Aircraft Investment (LUBNAN) Bhd, Malaysia and Black Turnstone Aviation Private Limited, Singapore.
Among these companies, Swift Air Cargo will provide two aircrafts and each of other five companies will provide one aircraft.
Recently, the State Bank of India moved to put some assets of United Airways (BD) as the company failed to repay the bank’s loans.
In its notice, the State Bank of India said the amount of loans disbursed against United Airways has stood at above BDT 336.46 million, including interests, as of November 27, 2016.
Mr. Tasbirul said the High Court (HC) stayed the execution of auction notice and asked the bank to solve the matter through discussion.
The securities’ regulator also extended timeframe for keeping provision against unrealised losses incurred in dealers’ and margin accounts maintained by merchant banks and brokerage firms till December, 2017.
The time extension for keeping provision came following a proposal submitted Tuesday by the DSE Brokers Association of Bangladesh (DBA). The previous deadline of keeping provision will end on December 31, 2016.