City Bank has announced plans to raise Tk 8 billion by issuing a subordinated bond to strengthen its capital base.
The bond, which will be repaid after other debts in case of financial difficulties, is aimed at meeting capital requirements under the Basel-III framework.
According to a disclosure on the Dhaka Stock Exchange (DSE), the bond issuance will also support City Bank’s business growth. The plan is subject to approvals from the Bangladesh Securities and Exchange Commission, Bangladesh Bank, and other regulatory authorities.
Despite the announcement, City Bank’s share price remained unchanged at Tk 22.80 in mid-day trading on the DSE.
