Al-Arafah Bank to issue bond of Tk 5.0b

The board of directors of Al-Arafah Islami Bank has decided to issue Mudaraba Subordinated Bond worth Tk 5.0 billion to strengthen its capital base, said an official disclosure on Tuesday.
The "AIBL 2nd Mudaraba Subordinated Bond" will be issued to strengthen Tier II capital of the bank as per requirement under Basel III, said the disclosure posted on the Dhaka Stock Exchange (DSE) website.
The bond will be non-convertible and redeemable, and will be sold through private placement.
The bank will issue the bond subject to approval of the regulatory authorities - Bangladesh Securities & Exchange Commission (BSEC) and Bangladesh Bank.
The bank's board also recommended 15 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2017.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on May 24 in the capital city. The record date for entitlement of dividend is on May 3.
The bank also reported consolidated earnings per share (EPS) of Tk 3.15, consolidated net asset value (NAV) per share of Tk 20.87 and consolidated net operating cash flow per share (NOCFPS) of Tk 10.40 for the year ended on December 31, 2017 as against Tk 3.07, Tk 19.72 and Tk 11.18 in the year ended on December 31, 2106.
In 2016, the Al-Arafah Islami Bank also disbursed 20 per cent cash dividend.
Each share of the bank, which was listed on the Dhaka bourse in 1998, closed at Tk 24 each on Tuesday at the DSE, registering an increase of 2.12 per cent over the previous day.
The bank's paid-up capital is Tk 9.94 billion and authorised capital is Tk 15 billion while the total number of securities is 994.30 million.
The sponsor-directors own 41.63 per cent stake in the bank, while the institutional investors 13.91 per cent, foreign 3.08 per cent and the general public 41.38 per cent as on February 28, 2018, the DSE data shows.

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