BSEC approves two bonds worth Tk 800cr

The capital market regulator has approved proposals from NRB Commercial Bank and Banga Building Materials Limited to issue two separate bonds with a combined value of Tk 800 crore.

The approval came at a regular meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday.

The meeting approved the proposed bond of Tk 500 crore of NRB Commercial Bank and Tk 300 crore of Banga Building Materials Limited.

NRBC Bank’s bond is non-convertible, unsecured, fully redeemable, floating rate, and subordinated.

The bond’s coupon rate ranges from 7-9 percent. The bond has a face value of Tk 1 crore per unit and will be issued through private placement.

The Tier-II capital base of NRB Commercial Bank will be strengthened through this bond issue.

City Bank Capital Resources Limited is acting as trustee and UCB Investments Limited is the mandated lead arranger for the bond.

Besides, Banga Building Materials Limited’s Tk 300 crore bond is a non-convertible, secured, fully redeemable, asset-backed, sukuk bond.

The return-on-investment rate of the sukuk is a minimum of 8 percent and a maximum of 11 percent on a six-monthly basis, where only banks can invest through private offerings.

Of the bond, Tk 160.75 crore will be used for the refinancing of the existing machinery of Banga Building Materials Limited and Tk 139.24 for the purchase of new machinery.

The face value of each unit of the sukuk is Tk 5,000, minimum subscription is Tk 1 lakh, and the minimum lot is 20. This 6-year-long sukuk will have one year grace period.

First Security Islamic Capital is acting as the trustee, and City Bank Capital Resources Limited is the issue advisor and arranger for the bond.

BSEC has set conditions for the inclusion of these two bonds in the Alternative Trading Board.