Meghna Bank gets approval for Tk 400 crore

Meghna Bank PLC has received approval from Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC) to issue a Tk 400 crore subordinated bond to strengthen its capital base and support business expansion.

The seven-year bond will be used to strengthen the bank’s Tier-2 capital, helping it maintain capital adequacy and expand its lending and investment activities.

The bond will carry a variable coupon rate based on the average of the highest interest rates on six-month fixed deposits offered by commercial banks in Bangladesh, excluding specialised, Islamic and foreign banks, as published by Bangladesh Bank. An additional margin of 3 percentage points will be added to the reference rate.

As of September 30, 2026, the annual coupon rate stood at 12.05 per cent, comprising a reference rate of 9.05 per cent and a margin of 3 percentage points. The rate may change in line with future movements in the reference rate.

Each unit of the bond will have a face value of Tk 5 lakh. The bond has been approved for issuance through private placement to eligible individual and institutional investors, subject to applicable laws and the terms of the issue.

The bond is required to be listed on the main board of the Dhaka Stock Exchange (DSE), potentially providing investors with an opportunity to trade it on the secondary market.

According to the information provided by the bank, individual investors may also be eligible for tax rebates under applicable income tax laws following the bond's listing on the DSE. The bank says the bond is exempt from excise duty and offers coupon payments every six months.

Principal repayment will begin at the end of the third year, with 20 per cent of the original investment to be repaid annually over the final five years.

The bank said the bond would help strengthen its financial position and support lending to businesses and productive sectors. It could also provide eligible investors with an alternative to conventional deposits and other investment products.

The coupon rate is variable, and returns may change over the bond's tenure. Investment decisions are subject to the bond's terms and applicable regulations.

sks