The stock market regulator has granted approval to a proposal of Eastern Bank Limited to issue a seven-year non-convertible 3rd subordinated bond worth Tk 5.0 billion for raising 'Tier-II Capital Base' of the bank.
"Bangladesh Securities and Exchange Commission (BSEC) has given consent for issuance of non-convertible third subordinated bond worth Tk 5.0 billion through private placement," according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.
The approval came at a meeting of BSEC held on Wednesday, with its Chairman Prof Shibli Rubayat-Ul-Islam in the chair, said an official.
As per the regulatory approval, the bank will float non-convertible, unsecured, floating rate and fully-redeemable subordinated bonds of Tk 5.0 billion through private placement.
The coupon rate of the perpetual bond is 6.0 per cent to 9.0 per cent per year. With the proceeds, Eastern Bank will enhance the company's capital base.
Each share of the bank, listed on the Dhaka Stock Exchange (DSE) in 1993, closed at Tk 31.90 on Thursday, losing 0.30 per cent over the previous day.
Its shares traded between Tk 31.30 and Tk 41 each in the last one year.
The bank's six-month consolidated earnings per share (EPS) stood at Tk 2.21 for January-June 2022 as against Tk 2.28 for January-June 2021.
The bank disbursed 12.50 per cent cash dividend and 12.50 per cent stock dividend for the year ended on December 31, 2021. In 2020, the bank provided 17.50 per cent cash and 17.50 per cent stock dividend.
© 2024 - All Rights with The Financial Express
