Bank Asia to raise Tk 500cr by issuing bond

Bank Asia Ltd has received the nod to raise Tk 500 crore by issuing a perpetual bond.

The  Bangladesh Securities and Exchange Commission approved the bond  yesterday in a meeting, which was presided over by its chairman Prof  Shibli Rubayat-Ul Islam.

Of the sum, Tk 450 crore would be raised  through private placement and the rest through public offer, said the  regulator in a press release.

The conditional convertible perpetual bond's coupon rate ranges from 6 to 10 per cent.

The  bond would be issued to financial institutions, mutual funds, insurance  companies, listed banks, regional rural banks, trusts, organisations,  autonomous bodies, and eligible investors.

With the bond proceeds, Bank Asia will strengthen its additional tier-1 capital base.

UCB  Investment is the trustee of the bond, while City Bank Capital  Resources and IDLC Finance are the issue manager and the arranger,  respectively.