The Bangladesh Securities and Exchange Commission (BSEC) has granted approval to three banks—One Bank, Brac Bank, and Dutch Bangla Bank—to issue a total of Tk1,600 crore in subordinated bonds to strengthen their tier-2 capital base. One Bank plans to issue Tk400 crore, Brac Bank Tk700 crore, and Dutch Bangla Bank Tk500 crore in unsecured, non-convertible, fully redeemable bonds with floating interest rates.
These bonds will be offered to institutional investors and high-net-worth individuals through private placement, with a face value of Tk10 lakh per unit for One Bank and Brac Bank and Tk1 crore per unit for Dutch Bangla Bank.
One Bank will issue subordinated bonds, enhancing its capital adequacy ratio (CAR) and ability to absorb losses. Brac Bank’s subordinated bonds will strengthen its capital position, improving its resilience to financial shocks. The Dutch Bangla Bank will issue bonds, which will enhance its Tier-2 capital base, contributing to its overall financial stability. These measures are important for banks to comply with regulatory capital requirements and ensure financial stability while supporting their growth and lending activities.
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