Islami Bank Bangladesh, the nation’s premier shariah-based bank, has announced plans to bolster its capital with a Tk 1,000 crore bond issuance aligned with Basel-III standards. This strategic move aims to enhance the bank’s capital adequacy, particularly in the tier-2 regulatory capital segment, as mandated for reserve requirements. The proposed IBBPLC Fifth Mudaraba Redeemable Non-Convertible Subordinated Bond will feature a floating interest rate and cannot be converted into equities. Investors will be repaid after senior debtors upon full repayment. The issuance, detailed in a filing on the Dhaka Stock Exchange, will occur through private placements in one or multiple tranches. Basel-III, an internationally recognized framework, underscores the importance of robust regulation, supervision, and risk management in banking operations. Islami Bank’s proactive steps reflect its commitment to maintaining financial resilience and regulatory compliance in a dynamic banking landscape.
Source for more details:
