Two banks to raise Tk 1,600cr via bonds

The Pubali Bank has decided to raise Tk 1,000 crore from the capital market through a subordinated bond subject to the approval of relevant regulatory bodies.

Its board approved the decision on bond issuance, the bank said in a filing with the Dhaka Stock Exchange (DSE) on Thursday.

The banks will use the proceeds to strengthen their capital base as per the regulatory requirements.

“Through the issuance of Subordinated Bond as Tier-II capital to support the bank’s Basel-III compliance regulatory capital in line with Bangladesh Bank Guidelines on Risk-Based Capital Adequacy dated December 2014,” said the bank.

Pubali Bank’s share price rose 3.5 per cent to Tk 26.60 on the DSE.

Meanwhile, Premier Bank Limited also announced to issue of a bond of Tk 600 crore.

Its board decided to issue the seven-year non-convertible, secured, fully redeemable, floating-rate subordinated bond to meet Tier-11 capital under Basel-III norms.