The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday, in its 975th commission meeting chaired by Chairman Khondoker Rashed Maqsood, approved bond proposals from three banks to strengthen their Tier-II capital base under Basel III.

The commission approved BRAC Bank PLC’s proposal to issue an unsecured, non-convertible, fully redeemable, floating-rate, social subordinated bond worth Tk 1,000 crore, carrying a coupon rate of Reference Rate + 2.5% margin.

The bonds will be issued through private placement to institutional investors at a face value of Tk 10 lakh per unit. Prime Bank Investment Limited will act as trustee and BRAC EPL Investment Limited as arranger. The bond will also be listed on the Alternative Trading Board (ATB).

United Commercial Bank PLC was allowed to issue an unsecured, non-convertible, redeemable, floating-rate subordinated bond worth Tk 800 crore, with a coupon rate of Reference Rate +3% margin.

The bond will be privately placed among institutional investors at Tk 1 lakh per unit. DBH Finance PLC will serve as trustee and UCB Investment Limited as arranger. The bond will also be listed on the ATB.

Trust Bank PLC received approval to issue an unsecured, non-convertible, redeemable, floating-rate subordinated bond worth Tk 500 crore, carrying a coupon rate of Reference Rate +3% margin.

The bond will be issued via private placement to institutional investors at Tk 1 lakh per unit. DBH Finance PLC will serve as trustee, while UCB Investment Limited and Trust Bank Investment PLC will act as arrangers. The bond will also be listed on the ATB.

The proceeds from these bond issues will be used to strengthen the Tier-II capital base of the respective banks, enhancing their capital adequacy under Basel III requirements.