BSEC approves Tk300 crore bond for City Bank

The tenure of the bond will be three years and per unit price has been set at Tk5,000

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved a non-convertible zero-coupon bond of Tk300 crore in favour of The City Bank Ltd.

The tenure of the bond will be three years and per unit price has been set at Tk5,000.

The bond is also fully redeemable, unsecured and unlisted.

BSEC Chairman M Khairul Hossain approved the bond in a commission meeting held at the commission headquarters, said a press release.

The City Bank aims to expand its business and strengthen its capital base by issuing the bond to other organisations.

The bond units will be sold to banks, corporate bodies, financial institutions and other institutional investors through private placements.

SBL Capital Management Ltd will act as the trustee and City Bank Capital Resources Limited will be the arranger of the bond.