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Exim Bank to issue Tk600cr mudaraba bond

Staff Correspondent
26 May 2023 00:00:00 | Update: 26 May 2023 01:11:44
Exim Bank to issue Tk600cr mudaraba bond

The board of directors of Export Import (Exim) Bank decided to issue a mudaraba subordinated bond for Tk 600 crore, subject to regulatory approvals.

This will be the fifth time for the lender to raise fund this way.

The listed private commercial bank will issue the bond as a process of inclusion in Tier-II capital as ‘subordinated debt’, for a period of seven years tenure through private placement, as per a disclosure filed with the Dhaka Stock Exchange (DSE) Thursday.

A subordinated debt is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings.

Exim Bank reported a profit increase of more than 72 per cent to Tk 372.02 crore in the year 2022, up from Tk 215.69 crore in 2021.

The board of directors of the lender recommended a 10 per cent cash dividend for the year ending December 31, 2022.

Despite this positive news, Exim Bank shares remained stuck at the floor price of Tk 10.40 per share on Thursday.