UCB Investment Completes Jamuna Bank Bond and DESCO Approves Share Issue
UCB Investment has successfully managed an 8 billion taka bond issue to strengthen Jamuna Bank's capital base. Meanwhile, listed utility company DESCO is set to issue preference shares worth over 450 million taka against government equity.
In significant financial and capital market developments originating from Dhaka, Bangladesh on September 2, 2023, UCB Investment Limited officially announced the successful conclusion of a major fundraising initiative. UCB Investment Limited, also referred to in market circles as UCBIL, acted as the lead arranger for Jamuna Bank PLC in this extensive financial undertaking. Through this collaborative effort, the institutions successfully completed the process of raising 800 crore taka by issuing the Jamuna Bank PLC Subordinated Bond V.
According to the verified operational details of the transaction, the substantial funds collected through this bond issuance are earmarked for a very specific regulatory purpose. The newly acquired capital will be utilized directly to strengthen the Tier-2 capital of Jamuna Bank PLC. This strategic financial bolstering will be executed strictly in accordance with the revised regulatory capital framework established by Bangladesh Bank, ensuring the financial institution maintains robust capitalization standards moving forward.
In a separate yet notable capital market development announced on the same date in Dhaka, the Dhaka Electric Supply Company Limited, commonly known as DESCO, made a significant corporate decision. The publicly listed utility provider will issue irredeemable non-cumulative preference shares valued at 45 crore 90 lakh taka. These specific shares are being issued specifically against government equity, marking an important financial maneuver for the state-backed utility provider.
DESCO holds an established presence within the national capital market structure, having originally been listed on the bourses back in the year 2006. The company operates under the broader purview of the power and energy sector, maintaining its registered corporate presence in Dhaka. Market observers and regulatory bodies, including the Bangladesh Securities and Exchange Commission (BSEC) and the Dhaka Stock Exchange (DSE), closely monitor such structural capital adjustments by listed utility providers and financial institutions alike.
