Two listed private commercial banks -Pubali Bank and Premier Bank-- have decided to issue subordinated bonds worth Tk 16 billion to strengthen their capital base.
The subordinated bonds are non-convertible, unsecured, fully redeemable and institutions can invest in the bonds for seven years.
Pubali Bank: The board of directors of Pubali Bank has taken a decision to raise Tk 10 billion through issuance of subordinated bonds as Tier-II capital to support the bank's capital base.
The bank will issue bonds to raise funds to meet Basel-III compliance regulatory capital in line with Bangladesh Bank guidelines on risk based capital adequacy dated December 2014, said the company in a filing with the Dhaka Stock Exchange on Thursday.
The bond issue is subject to the approval of concerned authorities such as Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC) and complying with regulatory requirements, according to the filing.
Each share of the bank, which was listed on the DSE in 1984, closed at Tk 25.10 on Thursday, losing 2.33 per cent over the previous day.
Currently, the bank's paid-up capital is Tk 10.28 billion, authorized capital is Tk 20 billion and total number of securities is 1.02 billion.
The bank also published its first quarter (Q1) un-audited financial statements on Thursday.
As per the Q1 financial statements, the bank's consolidated earnings per share (EPS) rose 21.42 per cent to Tk 1.19 for January-March 2022 as against Tk 0.98 for January-March 2021.
Premier Bank: The board of directors of Premier Bank has decided to issue non-convertible subordinated bonds worth Tk 6.0 billion to include in Tier-2 capital of the bank under Basel-III norms.
The bank will issue the bond through private placement and the tenure of the bond is seven years, according to a filing with the DSE on Thursday.
Features of the bond are non-convertible, unsecured and fully redeemable.
The bond issue is subject to the approval of the concerned authorities like the central bank and the stock market regulator and compliance of all other formalities, according to the filing.
Each share of the bank, which was listed on the DSE in 2007, closed at Tk 13.40 on Thursday, losing 0.74 per cent over the previous day.
Currently, the bank's paid-up capital is Tk 10.43 billion, authorized capital is Tk 15 billion and total number of securities is 1.04 billion.
As per Q1 un-audited financial statements published on Thursday, the bank's consolidated earnings per share rose 16.07 per cent to Tk 0.65 for January-March 2022 as against Tk 0.56 for January-March 2021.