IFIC Bank will raise a capital worth Tk 5.0 billion issuing subordinated bond to strengthen its tier-II capital base.
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the company's proposal of bond offer.
At the meeting, the securities regulator has also approved draft prospectus of Sandhani AML SLIC Fixed Income Fund.
As per the BSEC approval, the IFIC Bank will issue the bond to local financial institutions, insurers, corporate entities and eligible investors through private placements.
The bond with a tenure of seven years are unsecured, non-convertible and fully redeemable.
The offer price of the IFIC Bank's subordinated bond is Tk 10 million per unit.
Sena Kalyan Insurance Company and Standard Chartered Bank are working as trustee and mandated lead arranger of the bond respectively.
As per the BSEC condition, the bond will be listed with the Alternative Trading Board (ATB) of DSE and CSE.
The initial size of the open-end mutual fund namely Sandhani AML SLIC Fixed Income Fund will be Tk 500 million.
As sponsor, Sandhani Life Insurance has contributed Tk 100 million and the remaining the Tk 400 million will be collected from investors through sales of units of the fund.
The offer price of the units of the Sandhani AML SLIC Fixed Income Fund is Tk 10 each.
Sandhani Asset Management is the asset manager of the fund while Bangladesh General Insurance Company and BRAC Bank are the trustee and custodian respectively.
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