Dhaka, Bangladesh (BBN)-The Bangladesh Securities and Exchange Commission (BSEC) has given consent to IFIC Bank and Dhaka Bank for issuance of Non – Convertible Coupon Bearing Bonds.

The approval came at a commission meeting held on Monday at the BSEC office in Dhaka.

IFIC BANK:

The IFIC Bank will issue of Non – Convertible Coupon Bearing Bond (IFIC Sub – Ordinated Bond) amounting to BDT 3.50 billion only with a face value of BDT 1.0 million of each debt through private placement with semiannual interest payment for a group of institutional and individual investors.

The purpose of the issuance is to consolidate and strengthen their capital base (Tier – II Regulatory Capital Raising) in line with the Basel – III framework.

The tenure of the bond will be 7 years from the date of issue. The rate of interest would be: Coupon Floor Rate 10 percent and coupon ceiling rate 12.50 percent.

Actual rate will be based on cut – off rate of the latest auctioned 182 – days Bangladesh Government T-Bill plus 4.0 percent margin.

DHAKA BANK:

As per the BSEC approval, the Dhaka Bank will raise of capital amounting to BDT 3.0 billion only divided into 3,000 bonds of BDT 1.0 million each through issuance of floating rate non-convertible subordinated bond through private placement other than existing shareholders of the company.

The consent has been accorded subject to the compliance of relevant laws and regulatory requirements and also adherence to the conditions imposed by BSEC under Section-2CC of the Securities and Exchange Ordinance, 1969.

BBN/SK/AD