The board of directors of The City Bank Limited has decided to raise Tk 4.0 billion through issuance of perpetual bonds, said an official disclosure on Monday.
The City Bank will issue the bonds for raising fund to meet capital requirement under Basel III and to strengthen the regulatory capital base of the bank in line with the Bangladesh guideline on risk based capital adequacy dated December 2014, the disclosure said.
The issuance of bond is subject to approval from the concerned authorities -- Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC) and complying with regulatory requirements, the disclosure added.
Each share of the bank, which was listed on the Dhaka Stock Exchange in 1986, traded between Tk 26.9 and Tk 27.5, before closing at Tk 27.30 on Sunday at Dhaka Stock Exchange (DSE).
The bank will arrange its earnings disclosure event on financial information for half-year ended June 2019 today (Monday) at 5:00pm at Hotel Intercontinental, Dhaka. Existing and potential investors across the globe, researchers & analysts and many other individuals involved in capital market activities are invited to join the event.
Paid-up capital of the bank is Tk 10.16 billion and its authorised capital is Tk 15 billion while total number of its securities is 1.01 billion, according to the data available with the DSE.
The sponsor-directors own 30.29 per cent stake in the City Bank while institutional investors own 22.10 per cent, foreign investors 11.69 per cent and the general public 35.92 per cent as of June 30, 2019.
The bank disbursed 6.0 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2018.
