Dhaka, Bangladesh (BBN) – Islami Bank Bangladesh Limited (IBBL) will issue “IBBL Mudaraba Redeemable Subordinated Bond” worth BDT 5.0 billion, said an official disclosure on Tuesday.
“The board of directors has taken the decision to raise the Tier-II Capital of the bank under Basel-III through issuance of 7 years non-convertible “IBBL Mudaraba Redeemable Subordinated Bond” worth BDT 5.0 billion under Mudaraba principle of Islamic Shariah,” said the disclosure.
The issuance of bond is subject to the approval of Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC), the disclosure added.
Each share of the bank, which was listed on the Dhaka Stock Exchange in 1985, closed at BDT 41.30 on Monday at DSE.
However, after massive reshuffle in the bank’s top positions in early January, the bank’s share price reached to BDT 48 each, soaring 60 percent.
Changes have been made to the posts of the bank’s chairman, managing director, heads of various committees and chief of the Islami Bank Foundation in line with a decision at the bank’s board meeting on January 5.
Officials said some companies have bought the bulk of the local shares in the Islami Bank over the last one and a half years, leading to the latest reshuffle at its top level.
The bank’s third quarter (Q3) consolidated earnings per share (EPS) stood at BDT 0.46 for the July-September period of 2016 as against BDT 0.33 for the same period a year ago.
The bank’s paid-up capital is BDT 16.10 billion and authorised capital is BDT 20 billion, while the total number of securities is 160.99 million.
The sponsor-directors own 71.69 percent stake in Islami Bank, while institutional investors own 5.04 percent, foreign investors 6.38 percent and the general public 16.89 percent as on December 29 in 2016, the DSE data shows.
BBN/SS/ANS