News Briefs-(23-5-2018)

Mercantile, Rupali banks to issue bonds

Mercantile Bank and Rupali Bank will issue unsecured subordinated bonds worth Tk 3.0 billion and Tk 6.0 billion respectively. As per the approval of Bangladesh Securities and Exchange Commission (BSEC), both the banks will raise capital through issuing the bonds to fulfill the condition of Tier II capital base. Mercantile Bank will issue unsecured subordinated floating rate bond worth Tk 3.0 billion. The tenure of the bond will be seven years. Full redemption of the bond will be completed within the tenure. Only the institutional investors and high net worth individuals will be eligible for purchasing the bond through private placements. The face value of the bond unit is Tk 10 million each. Rupali Bank will issue unsecured subordinated floating-rate bond worth Tk 6.0 billion. The tenure of the bond will be seven years and its characteristics will be unsecured, non-convertible, unlisted and fully redeemable. Its redemption will be completed within seven years. Only institutional investors and high net worth individuals will be able to purchase the units through private placements. The face value of the unit is Tk 1.0 million. — FE Report