Dhaka, Bangladesh (BBN) – The board of directors of AB Bank has decided to issue fully redeemable non-convertible 7 years variable rated subordinated bonds worth BDT 4.0 billion.
The bond issue is subject to approval of Bangladesh Securities and Exchange (BSEC) and Bangladesh Bank (BB), said an official disclosure on Sunday.
The bank will issue the bond of Tk 4.0 billion for enhancement of Tier II Capital of the bank, where the interest will be payable semi-annually (7%-10.5% or as fixed/approved by the regulators) in arrears through private placement, said the disclosure.
Each share of the bank, which was listed on the Dhaka bourse in 1983, closed at BDT 17.80 on Thursday at DSE.
The bank’s paid-up capital is Tk 6.73 billion and authorised capital is Tk 15 billion, while the total number of securities is 673.89 million.
Sponsor-directors own 36.58 per cent stake in the bank, while the government owns 0.57 per cent, institutional investors own 28.16 per cent, foreign 2.35 per cent and general public 32.34 per cent as on May 31, 2017, the DSE data shows.