NBL to issue Tk500cr subordinated bond

National Bank Limited (NBL) has decided to raise Tk 500 crore through issuance of subordinated bonds to strengthen its capital base and support business growth.

The board of directors of the bank has decided to issue the bond, for raising funds to meet capital requirements under Basel-III, according to a filing with Dhaka Stock exchange (DSE) on Sunday.

The disclosure added that the issuance of bonds is subject to approval from the concerned authorities - Bangladesh Securities and Exchange Commission (BSEC), Bangladesh Bank (BB) - and complying with other regulatory requirements.

Each share of the bank, which was listed on the Dhaka Stock Exchange in 1984, at Tk 7.30- in the first one hours into the trade on Sunday.

Its shares traded between Tk 7.10 and Tk 9.20 in last one year.

The bank’s earnings decreased 50 per cent in its First quarter (Q1) compared to the same quarter of the previous year.

Its consolidated earnings per share (EPS) stood at negative Tk 0.18 for January-March, 2022 from Tk 0.12 in the corresponding period.

The bank has recommended no dividend for the year ended December 31, 2021.

The paid-up capital of the National bank is Tk 3,219 Crore and its authorised capital is Tk 5,000 crore while the total number of securities is 321 crore, according to the data available on DSE.

The sponsor-directors own 28.48 per cent stake in the bank while institutional investors own 23.94 per cent, foreign investors 0.84 per cent and the general public 46.75 per cent as of April 30.