The Bangladesh Securities and Exchange Commission (BSEC) has approved Dutch-Bangla Bank’s proposal to raise Tk 1,200 crore through subordinated bonds. This move is designed to enhance the bank’s Tier-2 capital under Basel III regulations and strengthen its overall regulatory capital base, according to a stock exchange disclosure reportedly.
The bond issuance will comprise 1,200 fully redeemable, non-convertible, unsecured bonds, each valued at Tk 1 crore. These subordinated debt instruments feature a floating interest rate and must be fully repaid upon maturity. Unlike secured bonds, they are not backed by collateral and rank below other debts in claims during liquidation.
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Dutch-Bangla Bank’s board initially announced its decision to proceed with the bond issuance on December 28, 2023.
Following the news, Dutch-Bangla Bank’s shares saw a 0.78% decline, trading at Tk 51.2 during mid-day on the Dhaka Stock Exchange today.
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