AB Bank to issue Tk 5.0b bond

The board of directors of AB Bank Ltd has decided to issue fully redeemable non-convertible subordinated bond for enhancement of Tier-II capital.

The AB Bank subordinated bond-IV will be Tk 5.0 billion with seven years maturity, variable rated and fund will be raised through private placement, said an official disclosure on Wednesday.

The interest will be payable semi-annually (7.0 per cent to 10.50 per cent or as approved by the regulators) subject to approval from the concerned regulatory authorities like Bangladesh Bank and Bangladesh Securities and Exchange Commission, said the disclosure.

The bank will issue the bond for raising fund for enhancement of Tier-II capital and to strengthen the regulatory capital base of the bank.

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