Meghna Bank to raise Tk 400cr through subordinated bond

The Bangladesh Securities and Exchange Commission (BSEC) has given the go-ahead to Meghna Bank PLC’s proposal to raise Tk 400 crore through a seven-year subordinated bond to strengthen its Tier-II capital base under the Basel III framework.

The approval was given at a commission meeting held yesterday, according to a press release.

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The bond will be non-convertible, unsecured and fully redeemable, with a floating coupon rate linked to the reference rate plus a 3 percent margin.

Each unit of the bond will have a face value of Tk 5 lakh.

Meghna Bank will raise the funds from corporate entities, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies, according to the press release.

The proceeds will be used to strengthen the bank’s Tier-II capital base under Basel III, a regulatory framework designed to improve banks’ capital adequacy and resilience.

DBH Finance PLC will act as the trustee of the bond, while BRAC EPL Investments Limited will serve as the issue manager.