The Bangladesh Securities and Exchange Commission (BSEC) has approved five scheduled banks to issue bonds worth a total of Tk 20 billion to bolster their capital base, according to a press release issued yesterday.

Islami Bank will raise Tk 5 billion through its fifth mudaraba unsecured, non-convertible, fully redeemable, floating-rate subordinated bonds.

Trust Bank will mobilize Tk 4.5 billion via unsecured, non-convertible, fully redeemable subordinated bonds. Both bonds will have a coupon rate equivalent to the six-month moving average rate of treasury bills plus 3%, with a face value of Tk 0.5 million per unit.

Dhaka Bank and Bank Asia plan to raise Tk 4 billion each by issuing unsecured, non-convertible, fully redeemable, floating-rate bonds. The face value of Dhaka Bank’s bond units will be Tk 1 million, while Bank Asia’s will be Tk 10 million.

Exim Bank received approval to raise Tk 2.50 billion through unsecured, non-convertible, redeemable, floating-rate subordinated bonds. Its bonds will also feature a coupon rate of the treasury bill reference rate plus 3%, with a face value of Tk 0.5 million per unit.