The Bangladesh Securities and Exchange Commission (BSEC) has approved bond issuance proposals totaling Tk 2,300 crore for three publicly listed banks: BRAC Bank, United Commercial Bank PLC (UCB), and Trust Bank PLC. The approval was granted during BSEC’s 975th commission meeting, chaired by Khondker Rashed Maksud on Tuesday (30 September), according to a press release signed by Md. Mohiominul Haque, Assistant Director (Public Relations) and Assistant Spokesperson of the commission.

As per the press release, BRAC Bank received approval to issue a Tk 1,000 crore unsecured, non-convertible, redeemable, floating rate subordinated bond. The bond will carry a coupon rate of reference rate plus 2.5%, and will be issued through private placement to institutional and high-net-worth individual (HNI) investors. Each unit of the bond will have a face value of Tk 10 lakh, and the proceeds will be used to strengthen the bank’s Tier-2 capital base. Prime Bank Investment Limited will act as the trustee, while BRAC EPL Investment Limited will serve as the arranger. The bond will also be listed on the Alternative Trading Board (ATB).

United Commercial Bank PLC was approved to issue Tk 800 crore worth of non-convertible, unsecured, fully redeemable, floating rate subordinated bonds. This bond will have a coupon rate of reference rate plus 3%, with each unit carrying a face value of Tk 1 lakh. Like BRAC Bank, UCB’s bond will also be issued via private placement to institutional investors. The funds raised will strengthen UCB’s Tier-2 capital, with DBH Finance PLC acting as the trustee and UCB Investment Limited as the arranger. The bond will be listed on the ATB.

Lastly, Trust Bank PLC received approval to issue Tk 500 crore in unsecured, non-convertible, redeemable, floating rate subordinated bonds, also at a coupon rate of reference rate plus 3%. Each unit will have a face value of Tk 1 lakh and will be issued through private placement to institutional investors. The proceeds will enhance Trust Bank’s Tier-2 capital base. DBH Finance PLC will serve as the trustee, while both UCB Investment Limited and Trust Bank Investment PLC will act as arrangers. This bond, too, will be listed on the Alternative Trading Board.

The approvals reflect BSEC’s continued support for capital market instruments as a tool for strengthening banks’ financial stability and capital adequacy.