IBBL to issue Tk 5.0b Mudaraba Bond

Islami Bank Bangladesh Limited (IBBL) will issue "IBBL Mudaraba Redeemable Subordinated Bond" worth Tk 5.0 billion, said an official disclosure on Tuesday.
"The board of directors has taken the decision to raise the Tier-II Capital of the Bank under Basel-III through issuance of 7 years non-convertible "IBBL Mudaraba Redeemable Subordinated Bond" of Tk 5.0 billion under Mudaraba principle of Islamic Shari'ah," said the disclosure.
The issuance of bond is subject to the approval of Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC), the disclosure said.
Each share of the bank, which was listed on the Dhaka bourse in 1985, closed at Tk 41.60 on Tuesday, advancing 0.72 per cent over the previous day.
After massive reshuffle in the bank's top positions in early January this year, the bank's share price rose to Tk 47.8 each on January 26, soaring 60 per cent.
Changes have been made to the posts of the bank's chairman, managing director, heads of various committees and chief of the Islami Bank Foundation in line with a decision at the bank's board meeting on January 5.
The bank's third quarter (Q3) consolidated earnings per share (EPS) stood at Tk 0.46 for the July-September period of 2016 as against Tk 0.33 for the same period a year ago.
The board of directors of the bank disbursed 20 per cent cash dividend for the year ended on December 31, 2015.
The bank's paid-up capital is Tk 16.10 billion and authorised capital is Tk 20 billion, while the total number of securities is 160.99 million.
The sponsor-directors own 71.69 per cent stake in Islami Bank, while institutional investors own 5.04 per cent, foreign investors 6.38 per cent and the general public 16.89 per cent as on December 29, 2016, the DSE data shows.
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