Bank Asia PLC wants to raise Tk 800 crore by issuing non-convertible subordinated bonds to enhance the Tier-2 capital base of the bank.
The decision of the issuance was taken at a board of directors’ meeting held on Wednesday, according to a filing at the Dhaka Stock Exchange (DSE).
The tenure of the bond, which is non-convertible and is floating rate subordinated, will be seven years.
The issuance is subject to the approval of the concerned regulatory authorities such as Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC).
The issuer of Bank Asia 1st Perpetual Bond has informed that the trustee of the bond has declared the coupon rate at 10 per cent per annum for the coupon period from December 28, 2023 to June 27, 2024.
The record date for entitlement of coupon of the bond June 26 while the coupon payment date is set on June 28.
Subordinated bonds that are mostly issued by banks dominate the local bond market. These help lenders construct their mandatory Tier-2 capital base through bond proceeds within a specific tenure.
The bank’s first quarter (Q1) consolidated earnings per share grew 25 per cent year-on-year to Tk 0.96 for January-March 2023.
Listed in 2007, the bank’s stock price stuck at floor at Tk 35.80 in the last three weeks.
