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MTB bond gets BSEC nod

FE REPORT | October 13, 2022 00:00:00

The securities regulator has approved the proposed Tk 5.0-billion subordinated bond issuance of the Mutual Trust Bank (MTB).

The Bangladesh Secu-rities and Exchange Commission (BSEC), at a meeting on Wednesday, approved the MTB's proposal of raising a fund of Tk 5.0 billion through issuance of fully redeemable, non-convertible and floating rate subordinated bond with a five-year tenure.

The MTB will utilise the fund to strengthen its Tier-II capital base along with facilitating the operation of general business activities and enhancing the loan portfolio in corporate, SME and retail segments.

The fund will also be invested in treasury securities and other instruments. The offer price of the MTB's bond will be Tk 10 million per unit.

The bond will be issued to local financial institutions, insurers, corporate entities and high net worth investors through private placements.

The UCB Investment and RSA Advisory are working as the trustee and mandated lead arranger of the bond respectively.

MTB Capital is the co-arranger of the bond, which will be listed with the stock exchange's alternative trading board as per the condition set by the BSEC.

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