Premier Bank’s perpetual bond gets nod
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The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved a perpetual bond and a mutual fund.
The approvals came at a commission meeting.
The regulator gave its consent to the Premier Bank's unsecured, contingent-convertible, non-cumulative and Basel-III compliant perpetual bond of Tk 200 crore.
With the proceeds, the lender will strengthen its capital base of additional tier-1, the BSEC said in a press release.
Of the funds, Tk 20 crore would be raised from the general people through public offer and the rest Tk 180 crore would be mobilised from institutional investors and eligible investors through private placement. The face-value of each unit of the bond is Tk 5,000, and the coupon rate is 6 to 10 per cent.
MTB Capital is the trustee of the bond, while UCB Investments is the arranger, issue manager and underwriter.
The BSEC approved an open-ended mutual fund named Ekush Growth Fund.
Mutual funds pool money from investors to channel it into securities such as stocks and bonds. Depending on the profits earned, investors are paid their share as dividends.
Open-ended mutual funds are not listed with the stock market. An investor can buy them from a fund manager's office on the basis of its net asset value. Investors can sell fund units at any time at the prices based on the current net asset value.
The Ekush Growth fund was approved on the condition of increasing the primary fund-raising target to Tk 25 crore from the previous plan of Tk 10 crore.
The mutual fund would be managed by Ekush Wealth Management. Its trustee and custodian are Sandhani Life Insurance and Brac Bank, respectively.
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