Southeast Bank gets BSEC clearance for Tk 800 cr subordinated bond
The Bangladesh Securities and Exchange Commission (BSEC) has approved a proposal from Southeast Bank PLC to issue a subordinated bond worth Tk 800 crore.
The approval for the 'Southeast Bank Subordinated Bond (Sixth Issue)' was granted during the 1,033rd commission meeting of BSEC held on Tuesday.
According to a BSEC press release, the bond will carry a tenure of seven years. It will operate as a fully redeemable, non-convertible, unsecured, floating-rate instrument. The coupon rate for the bond will be calculated by adding 3 percent to the benchmark reference rate.
The bonds will be issued through private placement to institutional investors and high-net-worth individual investors, with a face value of Tk 5 lakh per unit.
Southeast Bank plans to utilize the raised funds to strengthen its Tier-II capital base in compliance with Basel III regulatory guidelines. DBH Finance PLC will act as the trustee for the issue, while UCB Investment Limited will serve as the issue manager.
Under the BSEC decision, the bank is required to list the subordinated bond on the main board of the stock exchanges.
