The board of directors of Brac Bank has recommended rights share for the existing shareholders to raise its paid up capital.

The company will offer rights share at a ratio 1:2 - one rights share for every two shares held - at an issue price of Tk. 25 each including a premium of Tk. 15 per share on paid up capital subject to the approval of EGM and regulatory authorities.

The Bank will offer rights share to increase paid up capital to meet Bangladesh Bank Basel II requirements. As per the BB order a bank must have Tk 400 core as paid up capital. Existing paid up capital of Brac Bank is Tk 385.5 core.

The company has fixed record date for EGM on May 29, 2012, while the EGM will be held on June 28.

Another record date for entitlement of the proposed rights share will be notified later after obtaining approval from SEC. Venue of the EGM to be notified later.

The Daily Sun/ Bangladesh/ 21-May-2012