The Bangladesh Securities and Exchange Commission (BSEC) has approved Meghna Bank PLC’s plan to raise Tk 400 crore through a seven-year subordinated bond to enhance its Tier-II capital under the Basel III guidelines. This decision was made during a recent commission meeting as announced in a press release.
The subordinated bond will not be convertible, will be unsecured, and will be fully redeemable. It will carry a floating coupon rate tied to the reference rate plus a 3 percent margin, with each bond unit having a face value of Tk 5 lakh.
Meghna Bank intends to secure the funds from various sources including corporate entities, high-net-worth individuals, banks, financial institutions, provident and gratuity funds, and insurance companies, as detailed in the press release.
The raised capital will be utilized to bolster the bank’s Tier-II capital base in accordance with Basel III standards, which aim to enhance the capital adequacy and resilience of banks.
DBH Finance PLC will serve as the trustee for the bond, while BRAC EPL Investments Limited has been appointed as the issue manager for this initiative.
