Dhaka, Bangladesh (BBN) – Islami Bank Bangladesh Limited (IBBL) will issue “Second Mudaraba Redeemable Non-Convertible Subordinated Bond” of BDT 7.0 billion under Mudaraba principle of Islamic Shariah.

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, , said an official disclosure on Thursday.

However, 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 bourse in 1985, closed at BDT 33.70 on Wednesday at DSE.

The bank disbursed only 10 percent cash dividend for the year ended on December 31, 2017, after massive reshuffle in the bank top positions in early January this year.

Changes have been made to the posts of the banks chairman, managing director, heads of various committees and chief of the Islami Bank Foundation in line with a decision at the bank board meeting on January 5.

The banks third quarter (Q3) consolidated earnings per share (EPS) stood at BDT 0.31 for the July-September period of 2017 as against BDT 0.46 for the same period a year ago.

The banks paid-up capital is BDT 16.10 billion and authorised capital is BDT 20 billion, while the total number of securities is 1.60 billion.

The sponsor-directors own 44.55 percent stake in Islami Bank, while institutional investors own 5.15 percent, foreign investors 32.28 percent and the general public 18.02 percent as on October 31, 2017, the DSE data shows.