Islami Bank to issue Tk600 crore bond
Each unit of the bond will have a face value of Tk1 crore

Islami Bank Bangladesh Ltd has obtained the securities regulator's approval for issuing a Mudaraba redeemable non-convertible subordinated bond worth Tk600 crore.
The bond will be fully redeemable, unsecured and unlisted. It will be fully redeemable in seven years and each unit of the bond will have a face value of Tk1 crore.
The securities regulator approved the bond in a commission meeting held at its headquarters, said a press release.
With the money collected from the bond, the bank will strengthen its tier-2 capital base, said Bangladesh Securities and Exchange Commission (BSEC).
Local institutional investors, insurance companies, financial institutions in offshore development, and corporate and high net worth individuals can buy the bond units through a private placement.
Green Delta Insurance Company Limited will act as the trustee of the bond and Standard Chartered Bank is mandated as the lead arranger.
Islami Bank will pay 10% cash dividends to its shareholders for the 2019-20 financial year.
According to information from Dhaka Stock Exchange (DSE), the bank reported a consolidated net profit of Tk548.06 crore in the 2019-20 financial year.
During this period, the bank also reported earnings per share (EPS) of Tk3.40, which was 13% lower than that in the previous year.
The bank's paid-up capital is currently Tk1,610 crore.
Sponsors and directors jointly own 51.31% of the bank's shares while institutional investors, foreign investors and general investors hold 13.57%, 20.63% and 14.49% respectively.