UCB to issue Tk 8.0 billion bond

FE Online Report | Published: August 30, 2018 12:17:49 | Updated: September 03, 2018 11:39:17


The board of directors of United Commercial Bank (UCB) has approved the issuance of Tk 8.0 billion non-convertible subordinated bond.

The bank will issue the bond as part of Tier-II regulatory capital of the bank, subject to approval of the regulatory authorities like Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC).

The tenure of Tk 8.0 billion non-convertible subordinated bond of the bank will be seven years, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.

Characteristics of the bond are unsecured, non-convertible, non-listed and redeemable. The name of the bond is 'UCB 4th subordinated bond'.

The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals through private placements.

Each share of the bank, which was listed on the Dhaka bourse in 1986, closed at Tk 18.40 each.

The consolidated earnings per share (EPS) of the bank stood at Tk 0.74 for April-June, 2018 as against Tk 1.15 for April-June, 2017.

In the six months for January-June, 2018, its consolidated EPS was Tk 1.05 as against Tk 1.25 for January-June, 2017.

The consolidated net operating cash flow per share (NOCFPS) was minus Tk 9.42 for January-June, 2018 as against Tk 2.55 for January-June, 2017.

The consolidated net asset value (NAV) per share was Tk 25.54 as on June 30, 2018 and Tk 24.14 as on June 30, 2017.

The bank disbursed 10 per cent cash dividend for the year ended on December 31, 2107. In 2016, it paid 15 per cent cash dividend.

The bank’s paid-up capital is Tk 10.54 billion and authorised capital is Tk 15 billion, while the total number of securities is 1.05 billion.

The sponsor-directors own 36.67 per cent stake in the bank while the government owns 0.81 per cent, institutional investors own 18.50 per cent, foreign investors 1.94 per cent  and the general public 42.08 per cent as on July 31, 2018, the DSE data shows.

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