BSEC okays Tk400cr subordinated bond for Meghna Bank
The bond will be issued through private placement to corporate entities, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies.
The Bangladesh Securities and Exchange Commission (BSEC) has approved a seven-year subordinated bond worth Tk400 crore aimed at strengthening the issuer's capital base.
The bond will be issued through private placement to corporate entities, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies.
The approval came at a commission meeting held today (25 August) at BSEC's headquarters in Agargaon, presided over by BSEC Chairman Masud Khan.
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According to a press release, the bond is non-convertible, unsecured, fully redeemable, and carries a floating rate. Its coupon rate will be determined based on the reference rate plus a 3% margin, while the face value per unit has been set at Tk50 lakh.
The proceeds raised from the issue will be utilised by Meghna Bank to bolster its Tier-II capital base under the Basel III regulatory framework.
DBH Finance PLC will act as the trustee for the bond, while BRAC EPL Investments Limited will serve as the issue manager.
Meghna Bank, a fourth-generation bank, commenced its operations in 2013. According to its annual report, the bank posted a profit after tax of Tk5.38 crore in 2025, a significant decline from Tk50.45 crore in 2024.
Its consolidated profit and loss account showed net interest income turning negative by Tk124.93 crore, as interest paid against deposits and borrowings increased.
The bank paid Tk955 crore in interest against deposits and borrowings in 2025, up from Tk716 crore in 2024, the report showed. Meanwhile, its interest income on investments surged to Tk830.38 crore, up from Tk685.55 crore in 2024.
