The board of directors of Dutch-Bangla Bank Ltd (DBBL) has approved the issuance of third subordinated bond worth Tk 5.0 billion through private placement.
The bank will issue the bond to increase the Tier 2 capital in order to meet the capital requirement under Basel III and to strengthen the regulatory capital base of the bank, said an official disclosure on Monday.
The tenure of the unsecured and non-convertible subordinated bond is seven years.
The board has also decided that any subsequent changes in the features of the bond, if deemed necessary by the bank or required by the regulatory authorities, shall be placed for approval of the board of directors of the bank.
The issuance of the bond is also subject to the approval of Bangladesh Bank and the Bangladesh Securities and Exchange Commission.
Each share of the bank, listed on the Dhaka bourse in 2001, closed at Tk 67.20 on Monday, shedding 1.75 per cent over the previous day.
Its share traded between Tk 58 and Tk 237.20 in the past one year.
The bank's consolidated earnings per share (EPS) stood at Tk 6.73 in nine months for January-September 2019 period as against Tk 5.32 for January-September 2018.
Its consolidated net operating cash flow per share (NOCFPS) was Tk 18.90 for January-September 2019 as against Tk 16.95 for January-September 2018.
The consolidated net asset value (NAV) per share was Tk 52.87 as on September 30, 2019 and Tk 43.08 as on September 30, 2018.
The bank disbursed 150 per cent stock dividend for the year ended on December 31, 2018.
The bank's paid-up capital is Tk 5.0 billion and authorised capital is Tk 15 billion while total number of securities is 500 million, the DSE data show.
The sponsors/directors own 86.99 per cent stake in the bank while institutional investors own 2.29 per cent, foreign investors 0.02 per cent and the general public 10.70 per cent as on January 31, 2020.
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