Dhaka, Bangladesh (BBN) – Bangladesh’s Dutch-Bangla Bank Limited (DBBL) has approved the issuance of 2nd subordinated bond worth BDT 5.0 billion, said an official disclosure on Thursday.
The board of directors of the bank is going to issue the bond for increasing the Tier 2 capital to meet the capital requirement under Basel III and to strengthen the regulatory capital base of the bank, said the disclosure.
Nature of the instrument is: unsecured, non-convertible, subordinated bond and mode of placement is: private placement while the tenure of the instrument is seven years.
The board has 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.
The bond issue also subject to the approval of Bangladesh Bank and the Bangladesh Securities & Exchange Commission (BSEC).
Each share of the bank, which was listed on the Dhaka bourse in 2001, closed at BDT 147.10 on Wednesday at Dhaka Stock Exchange.
The bank’s paid-up capital is BDT 2.0 billion and authorised capital is BDT 4.0 billion while total number of securities is 200 million, according to statistics from the DSE.
The government owns 87 percent stake in the bank while institutional investors own 4.27 percent, foreign 0.13 percent and the general public 8.60 percent as on November 30, 2017.
The bank has reported earnings per share (EPS) of BDT 3.16 for July-September, 2017 as against BDT 2.02 for the same period a year ago.
In nine months for January-September, 2017, EPS was BDT 10.26 as against BDT 7.64 for January-September, 2016.
The bank disbursed 30 percent cash dividend for the year ended on December 31, 2016. In 2015, the bank disbursed 40 percent cash dividend.