Mutual Trust Bank is going to issue a fully redeemable, non-convertible and unsecured floating rate subordinated bond worth Tk 500 crore.

The Bangladesh Securities and Exchange Commission (BSEC) gave the approval today in a meeting presided over by its Chairman Prof Shibli-Rubayat-Ul Islam.

The bond would be issued among financial institutions, insurance companies, corporates, and eligible investors through private placement.

With the bond proceeds, the lender will strengthen its Tier-II capital base, increase its loan portfolio to corporates and invest in treasury securities. Each unit price of the bond is Tk one crore.

UCB Investments is the trustee and RSA Advisory is the mandated lead arranger. MTB Capital will work as a co-arranger.

However, the BSEC gave a condition to enlist the bond in the alternative trading board of the stock exchange.