AB Bank’s bond issue gets green light

AB Bank’s bond issue gets green light

The securities regulator has allowed AB Bank to raise Tk 4.0 billion by issuing non-convertible subordinated bonds to meet its tier-II capital requirement.

The bonds will have a maturity period of seven years.

The face value of the bond, which can be issued to only financial institutions and high net worth individual investors through private placement, will be Tk 10 million per unit.

The Bangladesh Securities & Exchange (BSEC) approved the proposal of the bank for issuing bond at a commission meeting held at the office of BSEC on Tuesday presided over by its chairman Prof M Khairul Hossain.

The bank’s share price hovered between Tk 24.60 and Tk 25.90, before closing at Tk 24.80, losing 2.74 per cent over the previous session.

Meanwhile, the bank reported negative earnings of Tk 0.17 per share in the July-September period of 2017 although it was in the positive at Tk 0.37 in the same period last year, according to the DSE.

Sponsors hold 36.58 per cent stakes in the bank while the government owns 0.57 per cent, institutions 26.39 per cent, foreign investors 1.89 per cent and general public the remaining 34.57 per cent, according to DSE data.

The board of directors of the bank disbursed 12.50 per cent stock dividend for the year ended on December 31, 2016.

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