Dhaka Bank to issue Tk600cr subordinated bond
The bond’s issuance is subject to approval by the Bangladesh Securities and Exchange Commission (BSEC), and Bangladesh Bank
Dhaka Bank Ltd has decided to issue a subordinated bond titled "Dhaka Bank 4th subordinated bond" to raise Tk600 crore for meeting its Tier-2 capital base.
The decision came at the bank's 449th board of directors' meeting on Monday.
The bank is yet to disclose the features of the bond, according to the bank's stock exchange filing.
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The bond's issuance is subject to approval by the Bangladesh Securities and Exchange Commission (BSEC), and Bangladesh Bank.
Currently, subordinated bonds that are mostly issued by banks dominate the local bond market. These help lenders construct their mandatory Tier-2 capital base through the bond proceeds within a specific tenure.
Dhaka Bank mainly provides a wide array of financial products (loans and deposits) and services that include all kinds of conventional and Islamic banking services to its customers.
It offers corporate banking, retail banking, trade services, cash management, treasury, SME, retail, custodial, and clearing services to its customers.
The bank started commercial operations in 1995 and was listed on the bourses in 2000.
In the January to March quarter of 2023, the bank's consolidated net profit stood at Tk60.22 crore while its net interest income stood at Tk110.39 crore.
During the period, its consolidated earnings per share stood at Tk0.63 and net asset value per share at Tk23.29.
As of 31 May 2023, the sponsors and directors jointly held 42.65% shares, institutions 16.58%, and the general public held 40.77% shares in the bank.
The last trading price of each share of the bank at the Dhaka Stock Exchange (DSE) was Tk12.5 on Monday.
