National Bank Ltd. (NBL) has issued fixed rate (11.0 per cent) subordinated bond worth of BDT 2.5 billion with a maturity period of seven years to increase its capital base in line with Basel-II framework. Standard Chartered Bank (StanChart) was the mandated lead arranger for this issue management that was placed privately for subscription after getting approval from Bangladesh Bank and the Securities Exchange Commission.

Director and Chairperson of the Executive committee of NBL Ms Parveen Haque Sikder was present as the chief guest at the closing ceremony of bond subscription at a city hotel Tuesday. StanChart CEO Jim McCabe and Managing Director of NBL Neaz Ahmed were also present.

"The bond has been fully subscribed by the investors, which is a sign of their confidence in National Bank", Mrs. Sikder said in the closing ceremony. The bond has been subscribed by investors from different segments including state-owned banks, private commercial banks, non-banking financial institutions and corporate houses. "Along with increasing the capital base of the bank, we have plan to invest the rest of the fund in industrial financing", Mr. Neaz Ahmed said, charting his plan of using the fund.

Highlighting its role in managing the bond issuance, CEO of StanChart Jim McCabe said, "This is the first ever subordinate bond issuance by NBL in Bangladesh and we're proud to be part of it". StanChart has been providing value-added services to financial institutions globally for years. The ceremony was attended by managing directors and senior officials of investor institutions.

News: The Financial Express/15 Dec 2010