Eastern Bank to issue Tk800cr zero-coupon bond

Eastern Bank, a private sector lender, has revised its earlier decision to raise Tk800 crore by issuing a zero-coupon bond, instead of a floating-rate bond, for a tenure of seven years. The move aims to strengthen its capital base.

The decision to issue the bond was approved by the board of directors at a board meeting held on 10 July, according to the Dhaka Stock Exchange (DSE).

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

Besides, the bank has also decided to establish a not-for-profit organisation under the name and style of "EBL Foundation", in accordance with the provisions of the Societies Registration Act, 1860.

Meanwhile, in the January-March quarter of 2025, the bank posted a consolidated net profit of around Tk154.62 crore and earnings per share of Tk1.14 during the quarter, which was 6% higher than the previous year at the same time. 

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

At the end of 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 paid 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 comprised 12.5% cash and 12.5% stock.

On Thursday, the share price of the bank increased by 0.81% to Tk24.80 on the Dhaka bourse.