Trading of City Bank Perpetual Bond will commence today (Monday) on the Dhaka Stock Exchange under settlement category "N".
DSE trading code for City Bank Perpetual Bond is "CBLPBOND", while scrip code is 26011, says a press release.
A perpetual bond is a hybrid security with no maturity date that has characteristics of both debt and equity. These types of bonds are not redeemable; instead provide a never-ending stream of interest payments.
City Bank, a publicly listed private commercial bank initiated the issuance process of the bond in 2019. It was a first-of-its-kind instrument that was never seen in the country before. With approvals from Bangladesh Bank and Bangladesh Securities and Exchange Commission on 19th August 2020 and 9th December 2020 respectively, the bank completed successful subscription of BDT 4.0 billion on March 07, 2021 through private placement. IDLC Investments Limited is the trustee of the bond while City Bank Capital Resources Limited is the arranger of the bond.
Bangladesh Securities and Exchange Commission on 23 May 2021 and 23 March 2022 amendment gave directives to list the bond in the main board of exchange(s). In accordance with the directives, the bank applied and received subsequent approvals from Dhaka Stock Exchange Limited (DSE) regarding listing of the bond on 18 January, 2022.
The bond is unsecured, contingent-convertible, fully paid-up, non-cumulative and BASEL-III compliant. The coupon range of the bond is from 6.00% to 10.00% and the coupon margin is 2.00%.
The bank's consolidated earnings per share (EPS) stood at Tk5.15 as on 31 December 2021 as against Tk4.09 as on 31 December 2020. The bank's paid-up capital was Tk10.67 billion and authorised capital is Tk15 billion at the end of 2021.
On the occasion, an inaugural ceremony was held at Dhaka Stock Exchange Tower. Tarique Amin Bhuiyan, Managing Director of Dhaka Stock Exchange, Sheikh Mohammad Maroof, Acting Managing Director, Mohammad Mahbubur Rahman, Additional Managing Director & CFO of City Bank and Ershad Hossain, Managing Director & CEO of City Bank Capital Resources Limited were present at the event.