The board of directors of City Bank Limited has decided to issue subordinated debt (bond) worth Tk 7.0 billion, said an official disclosure on Tuesday.
“The bank will issue the bond for raising fund to meet capital requirement under Basel III and to strengthen the regulatory capital base of the bank,” the disclosure said.
The issuance of bond is subject to approval from the regulatory authorities - Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), the disclosure added.
Each share of the bank, which was listed on the Dhaka bourse in 1986, closed at Tk 53.10 on Monday at Dhaka Stock Exchange (DSE).
Paid-up capital of the bank is Tk 9.21 billion and its authorised capital is Tk 15 billion while total number of its securities is 921.89 million, according to the available DSE statistics.
The sponsor-directors own 30.12 per cent stake in the City Bank while institutional investors own 18.51 per cent, foreign investors 16.16 per cent and the general public 35.26 per cent as of October 31, 2017.
The bank disbursed 24 per cent cash dividend for the year ended on December 31, 2016.