Meghna Bank gets regulatory approval for Tk 400cr subordinated bond

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

The seven-year bond will strengthen the bank's Tier-2 capital, helping it maintain capital adequacy and expand lending and investment activities, says a press release. 

The bond will carry a variable annual coupon rate based on the average of the highest six-month fixed deposit rates offered by commercial banks in Bangladesh, excluding specialised banks, Islamic banks and foreign banks, plus a margin of 3 percentage points.

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

Each unit will have a face value of Tk 5 lakh and will be issued through private placement to eligible individual and institutional investors. The bond will be listed on the main board of the Dhaka Stock Exchange (DSE), allowing secondary market trading.

Investors may also qualify for tax rebates under applicable income tax laws after listing. The investment is exempt from excise duty and carries no separate prescribed maximum investment limit of the type applicable to certain savings instruments, subject to relevant laws and regulations.

Coupon payments will be made semi-annually. Principal repayment will begin at the end of the third year, with 20 per cent of the original principal repaid annually over the remaining five years.