The board of directors of Eastern Bank Limited has decided to issue non-convertible subordinated bond of Tk 5.0 billion, said an official disclosure on Monday.
The bank will issue the bond for strengthening its capital base, subject to approval by the Bangladesh Bank (BB) and the Bangladesh Securities & Exchange Commission (BSEC).
The seven-year bond titled '2nd Subordinated Bond of EBL' is non-convertible, non-listed and redeemable.
Each share of the bank, which was listed on the Dhaka bourse in 1993, closed at Tk 35.80 on Monday, registering an increase of 1.70 per cent over the previous day.
The bank's paid-up capital is Tk 7.38 billion and authorised capital is Tk 12 billion while total number of securities is 737.99 million, according to statistics from the DSE.
The sponsor-directors own 31.56 per cent stake in the bank while institutional investors own 43.42 per cent, foreign 0.51 per cent and the general public 24.51 per cent as on June 30, 2018.
The bank reported consolidated earnings per share (EPS) of Tk 1.14 for April-June, 2018 as against Tk 1.04 for April-June, 2017.
In six months for January-June, 2018, the consolidated EPS was Tk 1.83 as against Tk 2.31 for January-June, 2017.
The consolidated net operating cash flow per share (NOCFPS) was Tk 10.47 for January-June, 2018 as against Tk 1.98 for January-June, 2017.
The consolidated net asset value (NAV) per share was Tk 29.25 as on June 30, 2018 and Tk 28.64 as on June 30, 2017.
The bank disbursed 20 per cent cash dividend for the year ended on December 31, 2017. In 2016, it disbursed 20 per cent cash and 5.0 per cent stock dividend.
Meanwhile, the board of directors of Meghna Cement Mills approved issuing fully redeemable preference shares of Tk 1.0 billion to raise its capital through private placement.
However, issuance of the preference shares is subject to approval by the shareholders and the regulatory authorities.
The generated fund will be utilised to increase the production capacity for business augmentation and maintain better leverage ratio of the company, according to a disclosure posted on the DSE website on Monday.
AAA Finance & Investment Ltd will act as the manager to the issue as well as the lead arranger of the fund.
Detailed features of the redeemable preference shares will be finalised and disclosed in due course, the disclosure said.
Each share of Meghna Cement, which was listed on the DSE in 1995, closed at Tk 93.90 each on Monday, losing 1.05 per cent over the previous day.
Its EPS was Tk 0.88 for January-March 2018 as against Tk 0.34 for January-March 2017.
In nine months for July 2017-March 2018, the company's EPS was Tk 1.27 as against Tk 0.57 for July 2016-March 2017.
The company disbursed 20 per cent cash dividend for the year ended on June 30, 2017.
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