Dhaka, Bangladesh (BBN) – The board of directors of United Commercial Bank (UCB) has approved the issuance of BDT 8.0 billion non-convertible subordinated bond.
The bank will issue the bond as part of Tier-II regulatory capital of the bank, subject to approval of the regulatory authorities like Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC).
The tenure of BDT 8.0 billion non-convertible subordinated bond of the bank will be seven years, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.
Characteristics of the bond are unsecured, non-convertible, non-listed and redeemable.
The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals through private placements.
Each share of the bank, which was listed on the Dhaka bourse in 1986, closed at BDT 18.40 each.
The consolidated earnings per share (EPS) of the bank stood at BDT 0.74 for April-June, 2018 as against BDT 1.15 for April-June, 2017.
In the six months for January-June, 2018, its consolidated EPS was BDT 1.05 as against BDT 1.25 for January-June, 2017.
The consolidated net operating cash flow per share (NOCFPS) was minus BDT 9.42 for January-June, 2018 as against BDT 2.55 for January-June, 2017.
The consolidated net asset value (NAV) per share was BDT 25.54 as on June 30, 2018 and BDT 24.14 as on June 30, 2017.
The bank disbursed 10 percent cash dividend for the year ended on December 31, 2107. In 2016, it paid 15 percent cash dividend.
The bank’s paid-up capital is BDT 10.54 billion and authorised capital is BDT 15 billion, while the total number of securities is 1.05 billion.
The sponsor-directors own 36.67 percent stake in the bank while the government owns 0.81 percent, institutional investors own 18.50 percent, foreign investors 1.94 percent and the general public 42.08 percent as on July 31, 2018, the DSE data shows.