City Bank to issue Tk700Cr bond

​The trustee and the arranger of the bond will be finalized very soon. 

​The City Bank Ltd has decided to issue a Tk700 crore subordinated bond.

The bank wants to meet the capital requirements stipulated in the Basel-3 regulatory framework by issuing the bond to support its continuous business growth.

The City Bank took the decision at its board meeting held last week, but it has not applied to the Bangladesh Securities and Exchange Commission (BSEC) yet.

Sources said the bond's features has not been finalised, but the process in this regard is running.

Besides, the trustee and the arranger of the bond will be finalised very soon, said sources.

The City Bank Ltd commenced its banking business on 14 March, 1983 under the license issued by the Bangladesh Bank.

The principal activities of the bank are to provide a wide array of financial products (loans and deposits) and services including all kinds of conventional and Islami banking services to its customers.

In the January-June period this year, the bank's consolidated earnings per share (EPS) was Tk2.06, which was Tk1 in the same period of 2020.

From April to June 2021, its consolidated EPS was Tk1.13, which was Tk0.29 in the same period of 2020.

In 2020, the bank's profit was Tk436.42 crore.

The bank was listed on the Dhaka Stock Exchange (DSE) in 1986.

Sponsors and directors hold 32.88%, institutional investors 23.64%, foreign investors 3.06%, and general investors 40.42% of the bank's shares.

At the end of the Sunday's trading session, its share's closing price was Tk27.30 each at the DSE.

Source: ​tbsnews