The trading of 25 percent subordinated convertible bonds of BRAC Bank will start at Dhaka Stock Exchange (DSE) on February 8 under 'N' category as per the decision of the board of directors of DSE.

DSE Trading Code is "BRACSCBOND" and DSE company code is 26003 for the bonds.

The bank issued 3 million subordinated 25 percent convertible bonds of Tk. 1,000 each worth Tk. 300 million through repeat public offering (RPO).

The main objective of issuing the convertible bonds is to raise Tier II capital through repeat public offering in order to comply with the regulatory requirement of Bangladesh Bank.

The proceeds of the public offering will strengthen the capital base of the bank and augment business expansion. The fund thus raised would be generally used for undertaking regular commercial banking activities.

Maturity period of the bond is 84 months from the date of issue. The interest margin and the reference rate will be set at 12.50 percent during the entire period.

The investor at the predetermined principal payment schedule of the bonds reserve the right and option to convert 25 per cent of the face value of the bonds at a conversion strike price into the common shares of BRAC Bank Ltd. However, conversion is not mandatory.

The conversion schedules will be the 5th, 6th and 7th anniversary of bond issuance date.

Meanwhile Mercantile Bank First Mutual Fund units will debut trading on next February 8 at Dhaka Stock Exchange as per the decision of the board of directors of DSE.

The units of MBL 1st Mutual Fund will start at under 'A' category and the trading code is "MBL1STMF" while DSE company code is 12184.

MBL First Mutual Fund raised Tk one billion through initial public offering (IPO).

In the MBL First Mutual Fund, the bank subscribed units worth Tk 100 million as sponsors, while Tk 400 million has been raised through pre-IPO or private placement, and the rest Tk 500 million has been collected through IPO.

News: Daily Sun/ Bangladesh/05 Feb 2011