The board of directors of Bank Asia has decided to raise Tk 5.0 billion through the issuance of perpetual bonds to boost the capital base of the bank.
The bank will issue the bond through private placement for raising funds as additional Tier-1 capital, to support the bank’s BASEL-III compliance in line with Bangladesh Bank guidelines on risk-based capital adequacy, the bank said in a filing with the Dhaka Stock Exchange (DSE) on Sunday.
A perpetual bond is a fixed income security with no maturity date and is often considered as a type of equity rather than debt. These types of bonds are not redeemable but instead provide a never-ending stream of interest payments.
The bond issue is subject to approval from concerned authorities – Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC) and complying with regular requirements, according to the filing.
Each share of the bank, which was listed on the Dhaka bourse in 2004, closed at Tk 16.70 on Wednesday last. Its shares traded between Tk 16.20 and Tk 19.60 each in the last year.
The bank’s consolidated earnings per share (EPS) stood at Tk 1.05 for January-March 2021 as against Tk 1.16 for January-March 2020.
The consolidated net operating cash flow per share (NOCFPS) was minus Tk 11.57 for January-March 2021 as against positive Tk 0.82 for January-March 2020.
The consolidated net asset value (NAV) per share was Tk 22.95 as of March 31, 2021, and Tk 22.32 as of March 31, 2020.
The bank declared 10 per cent cash dividend for the year ended on December 31, 2020. In 2019, the bank also disbursed 10 per cent cash dividend.
Its paid-up capital is Tk 11.65 billion and authorised capital is Tk 15 billion while the total number of securities is 1.16 billion.
The sponsor-directors own 53.55 per cent stake in the bank, while the institutional investors own 31.98 per cent, foreign investors 0.21 per cent and the general public 14.26 per cent as of March 31, 2021, the DSE data showed.