City Bank gets BSEC nod to issue Tk700cr bond

The Bangladesh Securities and Exchange Commission (BSEC) allowed The City Bank Ltd to issue a Tk700 crore subordinated bond.

The commission approved it during a meeting at its office on Tuesday.

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

It will be a non-convertible, unsecured, fully paid-up, fully redeemable, and floating-rate subordinated bond.

Through private placement, the bond can only be issued to local financial institutional investors, and high-net-worth individuals can buy the bond.

The face value of each unit of the bond will be Tk1 crore and it will be completely redeemable in seven years.

IDLC Investment Ltd has been named as the trustee of the bond and City Bank Capital Resources Ltd as the mandated arranger for the bond.

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.

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

Sponsors and directors hold 32.7%, institutional investors 23.06%, foreign investors 3.53%, and general investors 40.71% of the bank's shares.

At the end of Tuesday's trading session, its shares closed at Tk28.2 each at the DSE.