Premier Bank Limited has decided to issue a Tk400 crore perpetual bond and the proceeds will be regarded as Additional Tier-1 capital of the issuer, which will help the private sector lender fulfill its Basel-III requirement.
The board of the bank, which got listed on local stock exchanges in 2007, made the decision last week.
The name of the bond will be an unsecured contingent-conversion floating rate perpetual bond.
In this bond, Tk360 crore capital will be issued through private placement and the rest of Tk40 crore through public offerings subject to approval from the regulatory authorities.
To take the approval of the shareholders, the bank will arrange an extraordinary general meeting on 28 September 2021 and the record date has been determined on 1 September.
The principal activities of the lender are providing all kinds of conventional and Islamic commercial banking services to its customers which include deposits, loans, and advances, export and import financing, local and international remittance facilities.
According to the January-June period statements, the consolidated earnings per share (EPS) were Tk1.58, which were Tk0.90 in the same period of 2020.
From April to June 2021, its consolidated EPS stood at Tk1.03, up from Tk0.39 in the corresponding period of 2020.
Sponsors and directors hold 35.28%, institutional investors 20.80%, foreign investors 1.45%, and general investors 42.48% shares of the bank.
At the end of Thursday's trading session, its share's closing price was Tk13.60 at the DSE.