EBL to issue bonds worth Tk 500cr

Eastern Bank is going to issue non-convertible, unsecured and fully-redeemable floating rate subordinated bond worth Tk 500 crore. 

The lender got permission from the Bangladesh Securities and Exchange Commission (BSEC) to issue the bond in a commission meeting at the BSEC office in the capital yesterday.

The coupon rate of the bond is 6 per cent to 9 per cent and the face value of each unit is Tk 1 crore.

The bond will be issued among financial institutions, insurance companies, institutional investors, corporate and high-net worth people through private placement.

With the bond proceeds, Eastern Bank will strengthen its tier-2 capital base and invest in traditional businesses. The BSEC has imposed a condition that the bond has to be listed in the alternative trading board.

UCB Investments is the trustee of the bond.