Eastern Bank to issue Tk800cr bond

Eastern Bank, a private sector lender, has decided to raise Tk800 crore through issuing bonds for the tenure of seven years, aiming to enhance its capital base.

According to its price-sensitive statement, the floating rate non-convertible subordinate bond aimed at raising regulatory capital (tier-2) is expected to help the bank fulfil its Basel-III requirements.

The decision to issue the bond was approved by the board of directors at a board meeting yesterday, according to a statement from the bank.

The issuance of the bond is subject to approval from the Bangladesh Securities and Exchange Commission and the Bangladesh Bank.

Meanwhile, the bank also disclosed its financial statement for the first quarter of this year.

According to its disclosure, the bank posted the consolidated net profit of around Tk180 crore and the earnings per share of Tk1.14 during the quarter, which was 7% higher than the previous year at the same time. 

Earlier, the bank reported that it has achieved a historic milestone by reporting a net profit of Tk750 crore in 2024 – its highest ever.

The bank's standalone profit surged by 23% from Tk611 crore in 2023, driven by robust growth across core business segments.

At the end of the last year, its consolidated earnings per share stood at Tk4.86, which was Tk4.51 a year ago.

Following the robust growth in profit, the bank increased the dividend recommendation. Its board declared a 35% dividend for the last year, which will be the highest payout since 2020.

The dividend comprises 17.50% cash and 17.50% stock, reflecting the lender's robust financial health and commitment to rewarding shareholders.

The bank had previously paid a 25% dividend in 2023 that comprises 12.5% cash and 12.5% stock.

The private sector lender has fixed its annual general meeting on 21 May for approving the declared dividend and audited financial statement. 

On Monday, the share price of the bank increased by 0.48% to Tk21.10 on the Dhaka bourse.