AIBL’s Tk 500cr bond gets regulator nod

The securities regulator has approved the “4th AIBL Mudaraba Sub-ordinate Bond” floated by Al-Arafah Islami Bank Limited.

The approval came at a regular meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday.

The Tk 500 crore worth bond is a seven-year non-convertible floating rate bond.

That is, no part of the bond will be converted into shares, and its interest rate will be floating. The face value per unit of the bond is Tk 5 lakh.

By raising money through this bond issue, the bank will strengthen its Tier-II capital base. The bond will be listed on the Alternative Trading Board of the stock exchange.

The bond will be issued through private placement to local high net worth individuals and institutional investors.

UCB Investment Limited and Prime Bank Investment Limited are the lead arrangers of this bond.

First Security Islami Capital and Investment Limited will act as trustee.