The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday allowed IFIC Bank to issue a Tk500 crore subordinated bond through the private placement to strengthen its Tier-2 capital base.

The bond will be unsecured, non-convertible, fully redeemable, and floating rate subordinated.

The unit face value of the bond will be Tk1 crore.
The bond will be issued through the private placement to financial institutions, mutual funds, insurance companies, listed banks, cooperative banks, regional rural banks, organisations, trusts, autonomous corporations, and other eligible investors.

The trustee of the bond is Sena Kalyan Insurance Company while Standard Chartered Bank is the mandated lead arranger.

IFIC Bank was listed on local stock exchanges in 1986.

In the January-March quarter of 2022, the net profit of the private sector lender was Tk32.53 crore, down from Tk75 crore in the corresponding period of the previous year.

As of 30 April 2022, sponsors and directors jointly held 6.14%, the government 32.75%, institutions 21.01%, foreign investors 0.97%, and the general public 39.13% shares in the company.

On Wednesday, the last trading price for each share of the company on the Dhaka Stock Exchange was Tk12.60.