It will strengthen the capital base, the bank says
Dhaka Bank has received approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue its fourth subordinated bond worth Tk 400 crore.
The unsecured, non-convertible, floating-rate, and fully redeemable bond will be offered through private placement, with a minimum subscription price set at Tk 10 lakh, according to a disclosure on the Dhaka Stock Exchange website today.
For all latest news, follow The Daily Star’s Google News channel. Proceeds from the issuance aim to bolster the bank’s Tier-2 capital, in line with regulatory requirements, according to the disclosure.
Tier 2 is designated as the second or supplementary layer of a bank’s capital and comprises items such as revaluation reserves, hybrid instruments, and subordinated term debt.
The announcement follows earlier disclosures made by Dhaka Bank on July 2 of 2023, and October 3 of 2024 regarding plans for the bond issuance.
