Dhaka, Bangladesh (BBN)– The board of directors of Social Islami Bank Limited (SIBL) has decided to issue subordinated bond (6 years redeemable) worth BDT 4.0 billion in the name and style “SIBL 2nd Mudaraba Subordinated Bond”, said an official disclosure on Monday.
The bond issue is subject to approval of Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC), said the disclosure.
The other core features of the bond are given below: Value per unit: BDT 5.0 lacs, lot size: for individuals is 1 unit and for institution is 20 units. Minimum application for individual is BDT 5.0 lacs, and for institution is BDT 10 million.
Profit rate is 1.25 times of 1 year of Mudaraba Term Deposit profit rate. Redemption policy: 20 percent of the total bond value to be redeemed at the end of each year starting from year.
Payment of profit: semi annually no later than 60 days from expiry of 6 months and 12 months of each year from the date of issuance. Fund placement structure is private Placement and Listing Status is Un-Listed.
The bank was listed on the Dhaka bourse in 2000. Each share of the bank closed at Tk 11.60 on Sunday.
In 2013, the bank also issued Mudaraba Subordinate Bond worth BDT 3.0 billion to boost its capital under the Tier 2.