The Bangladesh Securities and Exchange Commission (BSEC) has approved Dutch-Bangla Bank Limited’s (DBBL) plan to raise Tk 1,200 crore in subordinated bonds.
According to a Dhaka Stock Exchange (DSE) disclosure, the bonds will be fully redeemable, non-convertible, unsecured and floating rate subordinated bonds.
In the disclosure, the bank mentioned that a total of 1200 number of bonds to be issued with face value of Tk 10 million each. The purpose of this proposed issue (bond) is to increase the Tier-2 capital under Basel III and to strengthen the regulatory capital base of the DBBL.
The subordinated bond is considered subordinated as it ranks below other traditional debts in claims during liquidation.
bd-pratidin/GR
