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Trading of City Bank Perpetual Bond will commence on the Dhaka Stock Exchange under settlement category “N” on Monday. DSE trading code for City Bank Perpetual Bond is “CBLPBOND”, while the scrip code is 26011.
A perpetual bond is a hybrid security with no maturity date that has characteristics of both debt and equity. These types of bonds are not redeemable; instead, they provide a never-ending stream of interest payments, said the bank in a statement.
City Bank, a publicly listed private commercial bank, initiated the bond issuance process in 2019. It was a first-of-its-kind instrument that was never seen in the country before.
With approvals from Bangladesh Bank and Bangladesh Securities and Exchange Commission on August 19 2020, and December 09 2020, respectively, the bank completed a successful subscription of Tk 4.0 billion on March 07, 2021, through private placement. IDLC Investments Limited is the bond’s trustee, while City Bank Capital Resources Limited is the arranger of the bond.
Bangladesh Securities and Exchange Commission, on May 23, 2021, and March 23, 2022, amendments gave directives to list the bond in the main board of exchange(s). Following the directives, the bank applied and received subsequent approvals from Dhaka Stock Exchange Limited (DSE) regarding the bond listing on January 18, 2022.
The bond is unsecured, contingent-convertible, fully paid-up, non-cumulative and BASEL-III compliant. The coupon range of the bond is from 6.00 per cent to 10.00 per cent, and the coupon margin is 2.00 per cent.
The bank’s consolidated earnings per share (EPS) stood at Tk 5.15 as of December 31, 2021, against Tk 4.09 as of December 31, 2020. The bank’s paid-up capital was Tk 10.67 billion, and its authorised capital was Tk 15.00 billion at the end of 2021.
On this occasion, an inaugural ceremony was held at Dhaka Stock Exchange Tower. Dhaka Stock Exchange Managing Director Tarique Amin Bhuiyan, Acting Managing Director Sheikh Mohammad Maroof, Managing Director & CEO of City Bank Capital Resources Limited Mohammad Mahbubur Rahman, and Ershad Hossain were present at the event.
