Bank Asia plans Tk1,000cr bond issue to boost capital
Bank posted 63% growth in EPS in 2025.
Bank Asia has decided to raise Tk1,000 crore by issuing a green sustainable subordinated bond to strengthen its regulatory capital base and finance environmentally sustainable projects.
In a disclosure issued today (7 May), the private sector lender said its board approved the issuance of the "Green Sustainable Subordinated Bond" at a meeting held yesterday (6 May).
The proposed bond will be non-convertible, unsecured, fully redeemable, coupon-bearing and floating rate in nature, with a tenure of seven years. The fund will be raised through private placement, subject to approval from relevant regulatory authorities.
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According to the bank, the proceeds from the bond issuance will be used to strengthen its Tier-II regulatory capital in line with Basel III requirements, alongside financing eligible green and sustainable initiatives.
Subordinated bonds are unsecured debt instruments that rank below senior debt in terms of repayment priority during liquidation or bankruptcy.
Meanwhile, Bank Asia reported a strong financial performance in 2025, posting a 63% year-on-year growth in earnings per share (EPS), which rose to Tk3.18 from Tk1.95 in 2024.
The bank also announced an 8.5% cash dividend and an 8.5% stock dividend for shareholders.
According to the disclosure, the stock dividend has been recommended to strengthen the bank's capital base and support future business expansion from the current year's profit.
