The board of directors of AB Bank Ltd has decided to issue fully redeemable non-convertible subordinated bond for enhancement of Tier-II capital.
The AB Bank subordinated bond-IV will be Tk 5.0 billion with seven years maturity, variable rated and fund will be raised through private placement, said an official disclosure on Wednesday.
The interest will be payable semi-annually (7.0 per cent to 10.50 per cent or as approved by the regulators) subject to approval from the concerned regulatory authorities like Bangladesh Bank and Bangladesh Securities and Exchange Commission, said the disclosure.
The bank will issue the bond for raising fund for enhancement of Tier-II capital and to strengthen the regulatory capital base of the bank.
The bank’s share price closed at Tk 11.60 each on Wednesday at the Dhaka Stock Exchange, remaining unchanged over the previous day.
In the last one year, its share traded between Tk 10.90 and Tk 26.80.
The AB Bank, which was listed on the Dhaka bourse in 1983, disbursed 12.50 per cent stock dividend for the year ended on December 31, 2016.
As per the un-audited financial statements of the bank, consolidated earnings per share (EPS) stood at Tk 0.01 for July-September 2018 as against Tk 0.15 negative for July-September 2017.
In nine months for January-September 2018, consolidated EPS was Tk 0.41 as against Tk 0.64 for January-September 2017.
The consolidated net operating cash flow per share (NOCFPS) was Tk 11.79 negative for January-September 2018 as against Tk 11.57 negative for January-September 2017.
The consolidated net asset value (NAV) per share was Tk 32.07 as on September 30, 2018 and Tk 32.28 as on September 30, 2017.
The sponsor-directors own 36.47 per cent stake in the bank, while the government owns 0.57 per cent, institutional investors own 24.25 per cent, foreign investors 1.25 per cent and the general public 37.46 per cent as of September 30, 2016.
The company’s paid-up capital is Tk 7.58 billion and authorised capital is Tk 15 billion, while total number of securities is 758.13 million, according to statistics from the DSE.
