Rupali Bank Ltd received approval from the Bangladesh Securities and Exchange Commission (BSEC) last week to issue unsecured, non-convertible and fully redeemable floating rate subordinated bonds to raise Tk 1,200 crore.

The listed state-run bank will issue the bonds, each with a face value of Tk 1 crore, among institutional and high-net-worth investors and use the proceeds to strengthen its capital base under Basel-III.

Its coupon rate would be the reference rate, which is an interest rate benchmark used to set other interest rates, plus a 2 percent coupon margin, meaning the average expected return.

BRAC EPL Investments Ltd is the trustee of the bond while City Bank Capital Resources is the arranger.