BSEC nods EBL to float Tk 500cr bond

Eastern Bank Limited (EBL) has received approval from the securities regulator to issue bonds worth Tk 500 crore.

Bangladesh Securities and Exchange Commission (BSEC) has approved the bond of Tk 500 crore of Eastern Bank Limited (EBL) listed on the stock market.

A press release informed that this approval was given in the regular meeting of the commission on Thursday.

According to BSEC, the commission has approved the proposal of Eastern Bank for Tk 500 crore 7 years non-convertible, unsecured, floating rate, fully redeemable subordinated bonds.

The bond will be issued through private placement. The face value per unit of the bond is Tk 1 crore. The coupon rate of this bond will be between 6-9 percent.

With the money raised through this bond issue, Eastern Bank will strengthen its Tier-II capital base and invest in conventional businesses.

The bond will be issued to financial institutions, insurance companies, institutional investors, corporates and high net worth individual investors.

UCB Investments is acting as trustee for the bond. The bond has been sanctioned on the condition that it will be added to the Alternative Trading Board.