The board of directors of Dutch-Bangla Bank Limited has approved the issuance of third subordinated bond worth Tk 5.0 billion, said an official disclosure on Monday.
The bank is going to issue the bond for increasing the Tier 2 capital to meet the capital requirement under Basel III and to strengthen the regulatory capital base of the bank, said the disclosure.
Nature of the instrument: unsecured, non-convertible, subordinated bond, mode of placement: private placement, tenure: seven years.
The board has also decided that any subsequent changes in the features of the bond, if deemed necessary by the bank or required by regulatory authorities, shall be placed for approval of the board of directors of the bank.
The bond issuance is also subject to the approval of Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC).
Each share of the bank, which was listed on the Dhaka bourse in 2001, closed at Tk 68.40 on Sunday at Dhaka Stock Exchange.
Its share traded between Tk 58 and Tk 237.20 in the last year.
The bank’s consolidated EPS was Tk 6.73 in nine months for January-September, 2019 as against Tk 5.32 for January-September, 2018.
Its consolidated NOCFPS was Tk 18.90 for January-September, 2019 as against Tk 16.95 for January-September, 2018.
The consolidated NAV per share was Tk 52.87 as on September 30, 2019 and Tk. 43.08 as on September 30, 2018.
The bank disbursed 150 per cent stock dividend for the year ended on December 31, 2018.
The bank’s paid-up capital is Tk 5.0 billion and authorised capital is Tk 15 billion while total number of securities is 500 million, according to statistics from the DSE.
The sponsors/directors own 86.99 per cent stake in the bank while institutional investors own 2.29 per cent, foreign 0.02 per cent, and the general public 10.70 per cent as on January 31, 2020.
