Dutch-Bangla Bank to issue Tk 5.0b bond

The board of directors of Dutch-Bangla Bank Limited (DBBL) has approved the issuance of the 2nd subordinated bond worth Tk 5.0 billion, said an official disclosure on Thursday.

The bank is going to issue the bond for increasing the Tier 2 capital to meet the capital requirement under Basel III and to strengthen the regulatory capital base of the bank, said the disclosure.

Nature of the instrument: unsecured, non-convertible, subordinated bond, mode of placement: private placement, Tenure: 7 years.

The board has also decided that any subsequent changes in the features of the bond if deemed necessary by the bank or required by regulatory authorities, shall be placed for approval of the board of directors of the bank.

The bond issue also subjects to the approval of Bangladesh Bank and the Bangladesh Securities & Exchange Commission (BSEC).

Each share of the bank, which was listed on the Dhaka bourse in 2001, closed at Tk 147.10 on Wednesday at Dhaka Stock Exchange.

The bank’s paid-up capital is Tk 2.0 billion and authorized capital is Tk 4.0 billion while the total number of securities is 200 million, according to statistics from the DSE.

The sponsors/promoters and directors own 87 percent stake in the bank while institutional investors own 4.27 percent, foreign 0.13 percent, and the general public 8.60 percent as of November 30, 2017.

The bank has reported earnings per share (EPS) of Tk 3.16 for July-September, 2017 as against Tk 2.02 for the same period a year ago.

In nine months for January-September, 2017, EPS was Tk 10.26 as against Tk 7.64 for January-September, 2016.

The bank disbursed 30 percent cash dividend for the year ended on December 31, 2016. In 2015, the bank disbursed 40 percent cash dividend.