ICB raises Tk 7.5b from subordinated bonds

The Investment Corporation of Bangladesh (ICB) has so far raised Tk 7.50 billion from the issuance of subordinated bonds floated as part of its market supportive measures.

The state-run corporation is expected to raise Tk 20 billion by offering the subordinated bonds. Of the total amount, Tk 15 billion will be invested in the listed securities.

The ICB officials expressed the hope that they would receive the remaining funds soon.

On July 17, the Bangladesh Securities and Exchange Commission (BSEC) approved the ICB's proposal for raising a fund of Tk 20 billion through issuing non-convertible fixed rate subordinated bond.

The securities regulator also set a condition that Tk 15 billion has to be invested in the listed securities to boost the country's capital market.

Accordingly, the ICB has already started making investment in the capital market after it received a fund of Tk 7.50 billion from three institutions by offering the subordinated bonds.

"We have already received Tk 7.50 billion from the Agrani Bank, the Dhaka Stock Exchange (DSE) and the Dhaka Bank. The remaining funds are in the pipeline," said ICB managing director Kazi Sanaul Hoq.

Of the amount, Tk 7.0 billion came from Agrani Bank, Tk 400 million from the DSE and Tk 100 million from Dhaka Bank.

Mr. Hoq also said some other banks have already sanctioned the funds against the bonds issued by the ICB.

"The remaining Tk 12.50 billion will be handed over to the ICB very soon," he added.

Of the remaining funds, Tk 5.0 billion will come from Janata Bank, Tk 5.0 billion from Sonali Bank, and Tk 1.50 billion from Rupali Bank, according to the ICB managing director.

[email protected]