Regulatory Alerts2016-05-29
Added · Updated
Guidelines on Commercial Paper for Financial Institutions
The guidelines establish regulatory standards for Financial Institutions in Bangladesh acting as investors, issuers, guarantors, or issuing and paying agents for Commercial Paper. Investors must ensure the issuer has a minimum equity of BDT 300 million, a debt-equity ratio of no more than 70:30, and a credit rating of at least 03, while total investment cannot exceed 30% of the investor's capital. Issuers are required to maintain paid-up capital of at least BDT 1,000 million, a CAMELS rating of at least 3, and a loan classification rate of 5% or below, with issuance capped at 30% of total capital. The instrument must have a maturity between 30 days and one year, be issued in denominations of BDT 1,000,000, and require prior approval from Bangladesh Bank for issuers and post-facto approval within 10 days for investors and guarantors.
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