BSEC allows ONE Bank's Tk 4.0b subordinated bond

FE REPORT | Wednesday, 22 June 2022

The stock market regulator has approved ONE Bank's proposal to raise Tk 4.0 billion through issuance of seven years floating rate subordinated bonds to raise Tier-2 capital of the bank.
The approval came at a meeting of Bangladesh Securities and Exchange Commission (BSEC) held on Tuesday. Chairman of BSEC Prof Shibli Rubayat-Ul-Islam presided over, said a BSEC statement.
As per the BSEC approval, the bank will float unsecured, non-convertible, fully redeemable, floating rate subordinated bonds worth Tk 4.0 billion through private placement.
The per unit price of the bond is Tk 10 million which will be issued to the local financial institutions, insurance companies, institutional investors, high net worth individual investors through private placement.
With the proceeds, the ONE Bank will improve its additional Tier-2 capital base.
Sena Kalyan Insurance Company is the trustee of the bond while Standard Chartered Bank is the mandated lead arranger.
Besides, BSEC gives a condition that the bond has to be listed on the alternative trading board.
Each share of the bank, which was listed on the Dhaka Stock Exchange (CSE) in 2003, closed at Tk 10.50 on Tuesday, losing 0.94 per cent over the previous session.
Its shares traded between Tk 10.30 and Tk 20.90 each in the last one year.
The bank's consolidated earnings per share (EPS) stood at Tk 0.45 for January-March 2022 as against Tk 0.79 for January-March 2021.
The board of directors has recommended a 5.0 per cent stock dividend for the year ended on December 31, 2021. In 2020, the bank disbursed 6.0 per cent cash and 5.50 per cent stock dividend.
The bank's paid-up capital is Tk 9.34 billion and authorised capital is Tk 10 billion while the total number of securities is 934.04 mllion.
Sponsor-directors own 32.06 per cent stake in the bank, while the institutional investors own 22.81 per cent, foreign investors 0.23 per cent and the general public 44.90 per cent as on May 31, 2022, the DSE data show.

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