BSEC approves two bonds of Tk 25b, one IPO of Tk 250m

FT ONLINE

Investment Corporation of Bangladesh (ICB) will issue subordinated bond to raise a capital worth Tk 20 billion for strengthening its market-supportive role, among others.

The Bangladesh Securities and Exchange Commission (BSEC) at its meeting on Tuesday approved the ICB's proposal in this regard.

The meeting also approved an IPO (initial public offering) proposal of S.S. Steel, which will raise a capital worth Tk 250 million under the fixed price method.

The tenure of the ICB's non-convertible and fixed rate bond will be seven years. The bond will be fully redeemable, unsecured and unlisted.

The bond units will be issued to different banks, insurance companies, financial institutions, corporate entities and high net worth individuals through private placement.

The fund will be invested in primary and secondary market as part of its market-maker role.

The ICB will also invest the fund as sponsor of NRB Mutual Fund and NRB Industrial Fund along with investing in infrastructure and 'thrust' sectors of the government, and PPP projects.

ICB Capital management and Alfa Capital Management are working as trustee and lead arranger respectively.

As per the BSEC approval, S.S. Steel will issue 25 million ordinary shares at an offer price of Tk 10 each under fixed price method.

The company's IPO fund worth Tk 250 million will be utilised to purchase machineries, construct building and bear the IPO expenses.

As per the financial statement for the year ended on June 30, 2017, the company's net asset value (NAV) per share is Tk 12, without revaluation, and Tk 15.35, with revaluation.

The company reported its earnings per share (EPS) of Tk 1.20 and weighted average of EPS of Tk 0.82.

Citizen Securities and Investment is working as issue manager of S.S. Steel.

Al-Arafa Islami Bank will also raise a capital worth Tk 5.0 billion through issuing non-convertible floating rate subordinated bond.

The tenure of the fully redeemable bond will be seven years. The company will raise the capital to fulfil the condition of Tier-II capital base.

At Tuesday's meeting, the securities regulator also approved the prospectus of EDGE Bangladesh Mutual Fund (MF), an open-end MF.

The initial size of the fund will be Tk 100 million and the fund's sponsor will contribute Tk 10 million, while remaining Tk 90 million will be collected from public.

The securities regulator also fined Saad Securities of Tk 0.5 million for breaching securities rules through disbursing margin loans against 'Z' category shares.