One Bank to issue Tk600 crore subordinated bond
One Bank PLC, a listed lender on the Dhaka Stock Exchange, has decided to float its sixth subordinated bond, to be titled "One Bank Subordinated Bond – 6th." The decision was approved at the bank's 397th board meeting held yesterday ( 25 June), according to a company disclosure.
The bank has previously issued five such subordinated bonds. With this new issuance, One Bank aims to raise Tk600 crore from the market. The funds will be used to strengthen its Tier-2 capital base in compliance with regulatory requirements.
According to sources, the bond will have a seven-year tenure and will be fully redeemed at maturity. It will be non-convertible, meaning no part of it can be converted into shares, and it will also be unsecured, with no collateral backing.
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The bond issuance is subject to regulatory approval from both the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC). Once these approvals are obtained, the bank will proceed with the issuance.
As of Thursday, One Bank's share was trading at Tk6.90 on the Dhaka Stock Exchange.
