The Pubali Bank has decided to raise Tk 1,000 crore from the capital market through a subordinated bond.
The decision was approved at a meeting of the bank’s board of directors, it said in a filing with the Dhaka Stock Exchange (DSE) on Thursday.
Subject to the approval of the stock market regulator, the listed banks will use the proceeds to strengthen their capital base.
"Through 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," the notice added.
The Pubali Bank raised Tk 500 crore bond to strengthen its capital base in line with regulatory requirements which was to spend the proceeds to strengthen its additional Tier-1 capital base and fulfills the Basel-III complaint, approved by BSEC on December 2021.
In the first one hours into the trade on Thursday, Pubali Bank's share price was Tk 26.60, share price was increased 3.5 per cent from Wednesday. The price moved between Tk 23.40 and Tk 31 throughout the last year.
