Investment Corporation of Bangladesh (ICB), one of the largest investors in the capital market, has decided to issue a subordinated bond worth Tk 20 billion.
"The board of directors of Investment Corporation of Bangladesh has decided to issue ICB Subordinated Bond of Tk 20 billion for seven years, including two years grace period (redeemable)," according to a statement posted on the Dhaka Stock Exchange (DSE) website on Sunday.
However, the issuance of the "ICB Subordinated Bond" is subject to approval by Bangladesh Securities and Exchange Commission (BSEC) and other regulatory authorities.
Investment Corporation of Bangladesh (ICB) will be the issuer of the coupon-bearing, non-convertible, redeemable and subordinated bond with a face value and issue value of Tk 10 million per unit.
The bond with non-listed status will be issued through private placement and minimum subscription for an individual will be one bond valuing Tk 10 million and for institution five bonds valuing Tk 50 million.
Late redemption interest will be an extra 2.0 per cent (yearly basis).
The interest rate of the transferable bond will be 9.0 per cent (yearly basis) to be paid on six-month basis, after deducting an income tax at source.
Each share of the state-run company, which was listed on the Dhaka bourse in 1977, closed at Tk 150.80 on Sunday, soaring 4.28 per cent over the previous session.
The company disbursed 30 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2017.
ICB's paid-up capital is Tk 6.64 billion and authorised capital is Tk 10 billion. Its total number of securities is 664.45 million.
The sponsor-directors own 69.81 per cent stake in the company, while the government owns 27 per cent, institutional investors 1.44 per cent and the general public 1.75 per cent as on February 28, 2018, the DSE record shows.
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