The stock market regulator has approved an unsecured contingent-convertible mudaraba perpetual bond worth Tk 6.0 billion in favour of Exim Bank.
The approval came at a meeting of Bangladesh Securities and Exchange Commission (BSEC) held on Sunday presided over by its Chairman Prof Shibli Rubayat-Ul-Islam, said a BSEC statement on Sunday.
As per the BSEC approval, the bank will float unsecured contingent-convertible BASEL-111 complaint, Exim Bank's mudaraba perpetual bond worth Tk 6.0 billion through private placement.
The price per unit of the bond is Tk 1.0 million which will be issued to the listed banks, mutual funds, insurance companies, regional rural banks, private organisations, trust funds, autonomous organisations and eligible investors though private placement.
The coupon rate of the perpetual bond is 6.0 per cent to 10 per cent.
With the proceeds, the Exim Bank will improve its additional Tier-1 capital base.
Green Delta Insurance is the trustee of the bond while City Bank Capital Resources is the mandated lead arranger.
Besides, the bond will be traded on the capital market after listing.
Each share of the Exim Bank, which was listed on the Dhaka Stock Exchange (CSE) in 2004, closed at Tk 11 on Sunday, losing 0.90 per cent over the previous session.
Its shares traded between Tk 8.60 and Tk 13.60 each in the last one year.
In nine months, the bank's consolidated earnings per share (EPS) stood at Tk 1.43 for January-September 2020 as against Tk 0.44 for January-September 2019.
The bank disbursed 10 per cent cash dividend for the year ended on December 31, 2019.
The bank's paid-up capital is Tk 14.12 billion and authorised capital is Tk 20 billion while the total number of securities is 1.41 billion.
The sponsor-directors own 37.95 per cent stake in the bank, while the institutional investors own 26.08 per cent, foreign investors 1.56 per cent and the general public 34.41 per cent as on February 28, 2021, the DSE data show.
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