Dhaka Bank has received approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue its fourth subordinated bond worth Tk 400 crore.
The unsecured, non-convertible, floating-rate, and fully redeemable bond will be offered through private placement, with a minimum subscription price set at Tk 10 lakh, according to a disclosure on the Dhaka Stock Exchange website today.
Proceeds from the issuance aim to bolster the bank’s Tier-2 capital, in line with regulatory requirements, according to the disclosure.
Tier 2 is designated as the second or supplementary layer of a bank’s capital and comprises items such as revaluation reserves, hybrid instruments, and subordinated term debt.
The announcement follows earlier disclosures made by Dhaka Bank on July 2 of 2023, and October 3 of 2024 regarding plans for the bond issuance.
Source: https://www.thedailystar.net/business/news/dhaka-bank-issue-tk-400-crore-bond-3766676
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