IFIC Bank to issue Tk 5.0b subordinated bond -
Its share price gains 4.88pc
FE REPORT | Monday, 29 August 2022
The board of directors of IFIC Bank has taken a decision to issue a non-convertible coupon-bearing subordinated bond worth Tk 5.0 billion to raise its Tier-2 capital.
The bank will issue the subordinated bond to help the bank meet the Basel III compliance in line with the Bangladesh Bank guidelines on risk-based capital adequacy.
Basel III is an international regulatory accord that introduced a set of reforms designed to mitigate risk within the international banking sector by requiring banks to maintain proper leverage ratios and keep certain levels of reserve capital in hand.
The issuing of bonds is subject to the approval of the regulatory authorities -- Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), the bank said in a filing with the Dhaka Stock Exchange (DSE) on Sunday.
Each share of the bank, listed on the DSE in 1986, closed at Tk 12.90 on Sunday, gaining 4.88 per cent over the previous day. Its shares traded between Tk 10.70 and Tk 21.80 in the last one year.
The bank disbursed a 5.0 per cent stock dividend for the year ended on December 31, 2021. In 2020, the bank also provided a 5.0 per cent stock dividend.
The bank's un-audited consolidated earnings per share (EPS) dropped 40.23 per cent to Tk 0.52 for January-June 2022 as against Tk 0.87 for January-June 2021.
Its EPS has decreased due to non-recognition of share of profit of one of the associated companies, namely Nepal Bangladesh Bank, and higher provisioning charge, officials said.
The consolidated net operating cash flow per share (NOCFPS) was minus Tk 2.70 for January-June 2022 as against positive Tk 4.57 for January-June 2021.
The consolidated net asset value (NAV) per share was Tk 17.58 as on June 30, 2022 and Tk 16.39 as on June 30, 2021.
The bank's paid-up capital is Tk 17.85 billion, authorised capital is Tk 40 billion and the total number of securities is 1.78 billion.
The sponsor-directors own 6.14 per cent stake in the bank, while the government owns 32.75 per cent, institutions 21.64 per cent, foreign investors 0.94 per cent and the general public 38.53 per cent as on July 31, 2022, the DSE data show.
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