Southeast Bank to raise Tk 500 crore thru bonds

Southeast Bank PLC is going to raise Tk 500 crore by issuing bonds to strengthen its core capital base.

Of the sum, Tk 450 crore will be mobilised under private placement and the rest Tk 50 crore through public offer, said the private commercial lender in a notification on the Dhaka Stock Exchange today. Per unit cost will be Tk 5,000.

It said the Bangladesh Securities and Exchange Commission has accorded its approval for raising the additional Tier-I regulatory capital through the issuance of an unsecured, contingent-convertible perpetual bond named Southeast Bank 1st Perpetual Bond.

Tier-1 capital refers to the core capital held in a bank's reserves and is used to fund business activities for clients. It includes common stock as well as disclosed reserves.

Along with Tier-2 capital, the size of a bank's Tier-1 capital reserves is used as a measure of the institution's financial strength.