Meghna Bank wins dual approval for Tk 400 crore Tier-2 bond at 12.05%

Meghna Bank PLC has won approval from Bangladesh Bank and the Bangladesh Securities and Exchange Commission to issue a seven-year subordinated bond worth Tk 400 crore, the lender said, a raise it will count as Tier-2 capital to support lending and investment.

The bond pays a variable coupon set at the average of the six highest six-month fixed deposit rates at commercial banks in Bangladesh, excluding specialised, Islamic and foreign banks, plus a margin of 3 percentage points. At 30 September 2026 that worked out to 12.05 percent a year, made up of a 9.05 percent reference rate and the margin, and the rate will move with the reference rate.

Units carry a face value of Tk 5 lakh and will be sold through private placement to eligible individual and institutional investors before listing on the main board of the Dhaka Stock Exchange, giving holders a secondary market. The bank said individual investors may qualify for tax rebates under applicable income tax laws once listed, and the investment is exempt from excise duty subject to regulations.

Coupons are paid semi-annually. Principal repayment starts at the end of the third year, with 20 percent of the original amount repaid annually over the following five years.

Meghna Bank said the issue would strengthen its capital position and support financing for productive sectors, industrial development and entrepreneurship, contributing to employment and to the development of the country's bond market.