Trust Bank to raise Tk 400cr through subordinated bond

The Trust Bank has decided raise Tk 400 crore from the capital market through a fully redeemable, non-convertible, and unsecured subordinated bond.

The decision was approved at a recent meeting of the bank’s board of directors, it said in a news filing with the Dhaka Stock Exchange (DSE) on Tuesday.

Subject to approval of the stock market regulator, the listed banks will use the proceeds to strengthen its
capital base.

Besides, the bank decided to expand its business and will invest Tk 9.10 crore in Trust Axiata Digital Limited (TADL) where Trust Bank owns 51 per cent stake.

The other owner of TADL is Axiata Digital Services Sdn Bhd, Malaysia with 49 per cent shareholding.

Trust Banks shares changed hands at Tk 34.4 on the Dhaka bourse on Tuesday.

The bank holds a paid-up capital of Tk 707 crore while its market capitalization is Tk 2,455 crore.