City Bank to issue Tk 4.0b perpetual bonds
FE Report | Tuesday, 30 July 2019
The board of directors of the City Bank Ltd. has decided to raise Tk 4.0 billion through issuance of perpetual bonds, said an official disclosure on Monday.
The bank will raise the fund to meet capital requirement under Basel III and to strengthen the regulatory capital base of the bank in line with the Bangladesh Bank guideline on risk-based capital adequacy, the disclosure said.
The issuance of bond is subject to approval from the authorities concerned -- Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC) -- and compliance with the regulatory requirements.
On Monday, shares of the bank, listed on the Dhaka Stock Exchange in 1986, were traded between Tk 26.9 and Tk 27.4 before closing at Tk 27, down 1.09 per cent over the previous session.
On the day, the bank also disclosed its financial information for the half-year period ended on June 30, 2019.
The bank's consolidated earnings per share (EPS) stood at Tk 1.12 for April-June 2019 as against Tk 1.05 for the same period of 2018.
The bank's consolidated EPS was Tk 1.91 for January-June 2019 as against Tk 1.44 for January-June 2018.
The consolidated net operating cash flow per share (NOCFPS) was negative Tk 6.15 for January-June 2019 as against Tk 12.30 for January-June 2018.
The bank's consolidated net asset value (NAV) per share was Tk 26.76 as on June 30, 2019 and Tk 25.74 as on December 31, 2018.
The paid-up capital of the bank is Tk 10.16 billion and its authorised capital is Tk 15 billion while total number of its securities is 1.01 billion, according to the DSE data.
The sponsor-directors own 30.29 per cent stake in the City Bank while institutional investors own 22.10 per cent, foreign investors 11.69 per cent and the general public 35.92 per cent as of June 30, 2019.
The bank disbursed 6.0 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2018.