Southeast Bank to raise Tk 800cr through subordinated bond

Bank clients waiting for transactions

Dhaka, Sept 29 — Southeast Bank PLC will raise Tk 800 crore through the issuance of its “Southeast Bank 6th Subordinated Bond”.

According to Bangladesh Securities and Exchange Commission (BSEC) sources, the approval was given at the commission’s 1,031st meeting on Tuesday, chaired by BSEC Chairman Masud Khan.

The seven-year bond will be fully redeemed at maturity and will be non-convertible and unsecured. Its coupon rate will be set at the reference rate plus 3 percent.

The bond will be issued through private placement to institutional investors and high-net-worth individuals, with a face value of Tk 5 lakh per unit.

Southeast Bank will use the proceeds to strengthen its Tier-2 capital base under Basel III requirements.

DBH Finance PLC will act as the trustee, while UCB Investment Limited will serve as the issue manager.

The bond will be listed on the main boards of both stock exchanges in Bangladesh. - UNB