LankaBangla Finance, Rupali Bank to issue bonds to raise Tk 14b

The securities regulator has allowed a non-banking financial institution (NBFI) and a state-owned commercial bank to raise an aggregate amount of capital worth Tk 14 billion by issuing bonds.
The Bangladesh Securities and Exchange Commission (BSEC) approved their proposals to raise money at a meeting on Thursday at the BSEC office.
As per the regulatory approval, Rupali Bank will collect Tk 12 billion by issuing subordinated bonds to strengthen its capital base as part of tier-II requirement.
The bonds will be issued through private placement to institutions and high net-worth individuals.
The offer price of the bonds is Tk 10 million per unit. The coupon rate will be the reference rate plus 2 per cent.
BRAC EPL Investments is working as trustee while City Bank Capital Resources is the arranger of the bonds to be issued by Rupali Bank.
LankaBangla Finance will raise Tk 2 billion by issuing zero coupon bonds.
The discount rate of the debt securities will be 9-10 per cent and will be issued to institutions and high net-worth individuals.
The offer price of the bonds has been fixed at Tk 833,333.33 per unit.
The company will utilise the fund to disburse loans to individuals, corporates and the SME sector.
Green Delta Capital and LankaBangla Finance are working as the trustee and arranger of the bonds respectively.

[email protected]