BSEC approves NCC Bank, StanChart bonds

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday allowed two bonds in favour of NCC Bank and Standard Chartered Bank.

The regulator at the meeting also allowed NCC Bank Limited to float non-convertible coupon bearing perpetual bond worth Tk 500 crore and Standard Chartered Bank to issue zero coupon bond worth Tk 850 crore.

As per the BSEC approval, both bonds would be unsecured, unlisted, fully redeemable non-convertible bonds.

The face value of each unit of the NCC Bank’s bond will be Tk 1 crore and coupon rate would be 9.5 per cent to 12.5 per cent.

The face value each of Standard Chartered Bank’s bond will be Tk 10 lakh and discount rate will be 4 per cent to 5 per cent.

Only corporate bodies, corporate institutions and other eligible investors will be allowed to subscribe the bonds through private placement.

The purpose of the bonds issue is to strengthen the banks’ capital base.

EC Securities Limited acts as the trustee and IDLC Finance Limited is the mandated lead arranger for the NCC Bank’s bond while Green Delta Insurance Company Limited acts as the trustee and Standard Chartered Bank Limited is the mandated lead arranger for the Standard Chartered Bank’s bond.