The Bangladesh Securities and Exchange Commission (BSEC) has approved Jamuna Bank PLC’s proposal to issue a bond worth BDT 800 crore, aimed at enhancing the bank’s Tier-2 capital under the Basel III framework.

The approval came during the 974th commission meeting of the BSEC held on Tuesday. The bond issuance is subject to the condition of submitting the trustee deed, the regulatory body confirmed.

According to the disclosure, the bond will carry a floating interest rate, with a 3% coupon margin added to the prevailing reference rate. The instrument will be unsecured, non-convertible, redeemable, and subordinated, to be issued through private placement.

The bond is targeted at institutional investors and high-net-worth individuals, with each unit carrying a face value of BDT 5 lakh.

DBH Finance PLC has been appointed as the trustee, while UCB Investment Limited will act as the arranger of the bond issuance.

Once issued, the bond will be listed on the Alternative Trading Board (ATB), providing a platform for secondary trading.

This move is part of Jamuna Bank’s strategic initiative to bolster its capital base and ensure regulatory compliance under the Basel III regime.