Mercantile Bank to issue up to Tk 500-cr subordinated bond

The board of directors of Mercantile Bank has decided to issue coupon-bearing non-convertible "Mercantile Bank 3d Subordinated Bond" up to 500 crore taka.

The Dhaka Stock Exchange (DSE) has confirmed the information on its website on Sunday.

The bank will issue the bond as Tier-II regulatory capital through private placement to strengthen the capital base of the bank under Basel-III guideline.

However, the issuance is subject to approval from concerned regulatory authorities.