Bank Asia Ltd has received approval from the securities regulator to issue perpetual bonds worth Tk500 crore in a bid to strengthen the additional Tier-1 capital base of the third-generation private sector lender.
Local institutional investors and high-net-worth individuals can buy the bond units through a private placement while general investors will be able to get it through a public offering.
Tk450 crore will be issued through the private placement and the remaining Tk50 crore through a public offering. The unit face value will be Tk5,000.
This would be a coupon-bearing, conditional convertible perpetual bond, the Bangladesh Securities and Exchange Commission (BSEC) said on Tuesday.
The coupon rate will be 6%-10% and the minimum subscription amount of the bond will be Tk1 crore in private placement while it stands at Tk5,000 for the public offer.
A coupon payment refers to the annual interest paid on a bond between its issue date and the date of maturity.
Local merchant bank UCB Investment Ltd will act as the trustee of the bond while another investment bank City Bank Capital Resources Limited will be the issue manager.
IDLC Finance Ltd will act as the arranger of the bond. Besides, First Security Islami Capital and Investment, MTB Capital, and EBL Investments Limited are working as the underwriter of the bond.
Bank Asia Ltd was listed on the capital market in 2004.
In the January-September period of 2021, the earnings per share of the third-generation bank were Tk2.36.
It reported a profit of Tk202.45 crore in 2020.
As of 31 January, sponsors and directors jointly hold 53.56%, institutions 32.98%, foreign investors 0.21%, and general investors 13.25% shares in the private lender.