United Air, 2 banks to float bonds worth Tk 1,024cr
The Bangladesh Securities and Exchange Commission on Thursday allowed three companies to issue Tk 1,024 crore bonds including Tk 228 crore of out of operation United Airways Limited.
United Airways will use the fund for making down payments for purchasing aircrafts, loan repayment, paying civil aviation’s fees and other liabilities.
The issue price of the bond will be Tk 1 crore each with a 12.50 per cent interest rate. ICB Securities Trading Company and RACE Capital Management are the arrangers, and Investment Corporation of Bangladesh is the trustee of the issue.
The capital market regulator gave the approval at a commission meeting presided over by its chairman M Khairul Hossain, a BSEC press release said on Thursday.
Apart from United Air, the commission at the meeting also allowed One Bank and Trust Bank to issue Tk 400 crore non-convertible subordinated bonds respectively.
The tenure of the bonds will be fully redeemed in seven years and will be non-convertible, unlisted, fully redeemable, floating rated, subordinated bond in nature.
The entities will be allowed to issue bonds to local financial institutions, corporate body, insurance company, funds and high net worth individuals through private placement.
Unit value of One Bank’s and Trust Bank’s bonds would be Tk 10 lakh and Tk one crore respectively.
The commission, however, did not mention the rate of interest on the bonds.
The commission earlier allowed United Airways to issue private placement shares worth Tk 400.08 crore for purchasing aircraft and repayment of existing liabilities.
Meanwhile, the commission approved conversion prospectus of Sixth ICB Unit Fund which set Tk 30 crore as target. ICB Asset Management Company is the asset manager of the fund where ICB will be the trustee and custodian.
The commission at the meeting also approved draft prospectus of Tk 25-crore open-end mutual fund.
Issue price of the fund will be Tk 10, while LankaBangla Asset Management Company, Bangladesh General Insurance Company and BRAC Bank are the fund’s asset manager, trustee and custodian respectively.
