Southeast Bank plans to raise Tk 700cr via perpetual bond

Southeast Bank has planned to raise Tk 700 crore via perpetual bond to strengthen its capital base in line with the regulatory framework.

The board of directors of the bank has approved the issuance of perpetual bond to increase Tire-I capital of the bank, subject to the approval of relevant regulatory authorities, said the bank in a filing with the Dhaka Stock Exchange on Thursday.

A perpetual bond is fixed income security with no maturity date. This type of bond is often considered a type of equity, rather than debt.

The bond sale plan needs the approval of the Bangladesh Securities and Exchange Commission and the Bangladesh Bank.

Public financial institutions, mutual funds, insurance companies, listed banks, cooperative banks, regional rural banks, trusts and autonomous corporations will be able to purchase the bonds on private offer.

Southeast Bank shares rose 0.63 per cent to Tk 15.9 on Thursday. The bank was listed on the stock market in 2000 and is currently traded in the ‘A’ category.

In the first quarter of 2021, the bank made a profit of approximately Tk 144.51 crore, which was 26 per cent higher than the same period a year ago. Last year, it paid 10 per cent cash dividend.