Dhaka, Bangladesh (BBN)-The board of directors of Dutch-Bangla Bank has approved, in principle, to issue subordinated bond subject to approval of the shareholders in General Meeting, securities regulator and Bangladesh Bank.
Some features of the bond are as follows: Issuer: Dutch-Bangla Bank Ltd., Issue Size: BDT 3.0 billion, nature of the instrument: unsecured, Non-Convertible, Subordinated Bond, Mode of Placement: Private Placement, Tenure: 7 Years.
Objective: Increasing the Tier 2 Capital to meet capital requirement under Basel III and to strengthen the regulatory capital base of the Bank.
The board also decided that any subsequent changes in the features of the Bond if deemed necessary by the Bank or required by regulatory authorities shall be placed for approval of the board of directors of the Bank.
Dutch-Bangla Bank was listed on the Dhaka bourse in 2001. The bank belongs to the “A” category.
The sponsor-directors own 87 per cent stake in the Dutch-Bangla Bank, while institutional investors own 6.76 per cent, foreign investors 0.21 per cent and the general public 6.03 per cent as on March 30, 2016.
The company’s paid-up capital is BDT 2,000 million and authorised capital is BDT 4,000 million, while total number of securities is 200,000,000, according to statistics from the DSE.
Thursday’s closing price of each Dutch-Bangla Bank share was BDT 102.70.
BBN/SK/AD