The Bangladesh Securities and Exchange Commission yesterday gave the go-ahead to Pubali Bank's perpetual bond worth Tk 500 crore.

The approval came in a commission meeting at the securities commission building.

The bond would be unsecured, contingent-convertible, non-cumulative and Basel III complaint.

Of the Tk 500 crore, Tk 450 crore would be issued through private placement and the rest Tk 50 crore through public offer.

Face value of each bond is Tk 5,000. Its coupon rate ranges from 6 per cent to 10 per cent.

It would be issued to financial institutions, mutual funds, insurance companies, listed banks, and eligible investors.

With the bond proceeds, the lender will strengthen its capital base of additional tier 1.

The trustee of the bond will be Green Delta Capital while the arranger, issue manager and underwriter will be City Bank Capital Resources and UCB Investments jointly.