NRBC Bank to issue Tk500cr subordinated bond

The NRB Commercial (NRBC) Bank Limited will issue a subordinated bond worth Tk500 crore to meet its Tier-2 capital base.  

The coupon-bearing bond will be unsecured, and non-convertible, according to the Dhaka Stock Exchange (DSE). 

The bank will follow the regulatory requirement regarding issuing bonds and will take approval from the Bangladesh Securities and Exchange Commission, and the 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.

NRBC Bank was listed on the stock exchange last year.

Its activities include banking, accepting customer deposits, lease financing, project financing, inter-bank borrowing, lending to retail, small and medium-sized enterprises, corporate customers, and foreign trade businesses, and dealing in government securities and equity shares. 

In the January to March quarter of 2022, the bank's consolidated net profit stood at Tk65.96 crore while its net interest income stood at Tk107.96 crore.

During the period, its consolidated earnings per share stood at Tk0.89 and net asset value per share at Tk17.14. 

As of 30 April 2022, the sponsors and directors jointly held 73.32% shares, institutions 3.50%, and the general public held 23.18% shares in the bank.

The last trading price of each share of the bank at the DSE was Tk20 on Wednesday.