The Bangladesh Securities and Exchange Commission (BSEC) has allowed the Sikder family dominated National Bank to issue a Tk500 crore bond at a time when the lender is facing a tough time due to loan scams and the absence of good governance.
The first-generation private lender said in a stock exchange filing on Sunday that it had received the regulator’s nod to issue the subordinated bond to strengthen its capital base in order to meet the Basel III requirement.
But it has not disclosed the tenure of the bond and made no mention of the date of getting the commission’s approval.
Dhaka Stock Exchange (DSE) on Sunday
Seeking anonymity, a DSE official said the National Bank has updated the financial information upon a query by the country’s premier bourse. The lender had earlier declared in May last year that it had decided to issue Tk500 crore bond.
The Business Standard was unable to reach any officials of the lender on their mobile phones for comment to this end.
According to BSEC spokesperson Rezaul Karim, the commission approved the bank to issue the bond through a private placement in November last year, subject to regulatory requirements being met.
“But we did not disclose it to the public,” he added, without giving any reason for this.
According to the private placement of debt securities rules, the issuer should have maintained the capital adequacy ratio, which is determined by its primary regulator. The issuer needs to have a good track record of profitability…
