NRB Commercial Bank to issue Tk500 crore subordinated bond

NRB Commercial Bank Ltd decided to issue coupon bearing subordinated bonds worth Tk500 crore to fuel its microcredit and regular credit programmes across the country.

The new generation bank, recently listed in the stock market, has informed that the proceeds would strengthen its Tier II capital if the bonds are approved by the regulatory authorities.  

Its board of directors decided in the 122nd board meeting on Thursday that the bonds would be non-convertible, unsecured, coupon bearing and subordinated ones which mean the bondholders would not get any share of the bank after the tenure, they would only enjoy interests at a regular interval.