The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved a fully redeemable non-convertible mudaraba subordinated bond of Tk 700 crore in favour of First Security Islami Bank Limited.
The approval was given at a commission meeting held at its headquarters. BSEC Chairman M Khairul Hossain presided over the meeting, said a BSEC statement.
The purpose of the issue is to strengthen the capital base (Tier-2) of the company. The tenure of the First Security Islami Bank bonds will be seven years. Per unit price of the bond will be Tk10 lakh.
The units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net-worth individuals through private placements.
Green Delta Insurance Company Limited will act as the Trustee and Asian Tiger Capital Partner Investments Limited arranger for the Bond.
The proceeds of the Bond will strengthen the bank’s capital base and meet its capital requirement through private placement, subject to the approval from the Bangladesh Bank, company officials said.
First Security Islami Bank was incorporated on 29 August 1999 as a commercial bank. The bank got listed at the Dhaka Stock Exchange (DSE) in 2008. The companies sponsor directors now holds 37.60%, institutional investors hold 14.53%, foreign 4.38% and general shareholders hold 43.49% of First Security Islami Bank’s shares.
