Two banks and one non-banking financial institution will raise Tk 14 billion through issuing separate bonds to fulfil the condition of capital adequacy.
Among the companies, Islami Bank Bangladesh Limited (IBBL) will raise Tk 5.0 billion, LankaBangla Finance Tk 5.0 billion and National Bank Limited (NBL) Tk 4.0 billion.
All these three companies are listed with the country's stock exchanges.
The Bangladesh Securities and Exchange Commission (BSEC) approved the three proposals of bond issue at a meeting held Thursday.
As per the regulatory approval, the IBBL will raise capital worth Tk 5.0 billion through non-convertible mudaraba subordinated bond to be issued to financial institutions, corporate bodies and funds. The fully redemption period of the bond will be seven years. The bank will raise capital through bond to fulfil the condition of tier-II.
LankaBangla Finance will issue non-convertible zero coupon bond worth Tk 5.0 billion to fulfil the company's ongoing financing requirements. The tenure of the bond will be three years and characteristics will be non-convertible, unlisted, floating rated and un-secured subordinated.  
National Bank Limited (NBL) will raise a capital worth Tk 4.0 billion through non-convertible second subordinated bond. The tenure of the bond will be seven years. By raising capital, the bank will fulfil the condition of tier-II regulatory capital and capital to risk-weighted asset ratio. The bond will be issued through private placement to only institutional investors, corporate bodies and higher net worth investors.
Green Delta Insurance Company will work as trustee of the bond to be issued by IBBL, LankaBangla Finance and NBL.
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Source: The Financial Express