Published on 12:00 AM, December 14, 2021

UCB Investment raises funds for 3 banks

UCB Investment has managed to raise funds for three banks by issuing perpetual bonds.

A perpetual bond is a fixed income security with no maturity date that is treated as additional tier-1 capital.

After a 14-year hiatus, the Al Arafah Islami Bank Mudaraba Perpetual Bond made its debut at the Dhaka Stock Exchange on December 5.

This is the very first perpetual bond that got approved under the new regulation, UCB Investment said in a press release.

The allotment ceremony of the Islami Bank 2nd Mudaraba Perpetual Bond and the Sahjalal Islami Bank Mudarba Perpetual Bond were also completed.

Public offers of both bonds are fully subscribed and the trading of these bonds will start soon at the Dhaka Stock Exchange, it added.

The IBBL 2nd Mudaraba Perpetual Bond is the largest issuance by any bank till date.

UCB Investment is the issue manager and arranger for all three bonds.

UCB Investment began this journey last year under the leadership of Tanzim Alamgir, founding managing director and chief executive officer of the merchant bank.

The company is also mandated to raise fund for different banks and non-banking financial institutions through the issuance of perpetual bonds, subordinate bonds and zero coupon bonds.

Moreover, they have already raised Tk 500 crore for the AIBL Mudaraba Perpetual Bond recently. It is the very first perpetual bond that announced its closure under the new regulation.