The board of directors of Jamuna Bank has decided to raise capital through issuance of subordinated bond worth Tk 5.0 billion to strengthen the capital base of the Bank.
The bank will issue the non-convertible coupon bearing subordinated redeemable bond (4th phase) as part of the Tier-II of revised regulatory capital framework for banks in line with Basel-III through private placement.
The purpose of the proposed bond is to strengthen the capital base of the Bank, the company said in a filing with the Dhaka Stock Exchange (DSE) on Tuesday.
The issuing of bonds is subject to the approval of the concerned regulatory authorities - Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC).
Each share of the bank, which was listed on the DSE in 2006, closed at Tk 18.40, gaining 3.37 per cent over the previous day. Its share traded between Tk 16 and Tk 20.40 in the last one year.
The bank disbursed 17.50 per cent cash dividend for the year ended on December 31, 2020. In 2019, it paid 15 per cent cash dividend.
The bank's consolidated earnings per share (EPS) stood at Tk 1.60 for January-March 2021 as against Tk 1.42 for January-March 2020.
The consolidated net operating cash flow per share (NOCFPS) was Tk 15.62 for January-March 2021 as against Tk 10.76 for January-March 2020.
The consolidated net asset value (NAV) per share was Tk 31.42 as on March 31, 2021 and Tk 24.50 as on March 31, 2020.
The bank's paid-up capital is Tk 7.49 billion, authorised capital is Tk 10 billion and the total number of securities is 749.22 million.
The sponsor-directors own 47.94 per cent stake in the bank, while the institutions own 6.68 per cent, foreign investors 0.35 per cent and the general public 45.03 per cent as of March 31, 2021, the DSE data shows.