Trust Bank allowed to issue Tk400 crore bond

The securities regulator has approved the Trust Bank Limited to issue a subordinated bond worth Tk400 crore.

The Bangladesh Securities and Exchange Commission (BSEC) gave the approval during its meeting Wednesday.

The bank will strengthen its additional Tier-2 capital base with the raised money.

It will be an unsecured, non-convertible and floating-rate bond. Bond investors' return would be measured based on the floating rate.

Government financial institutions, mutual funds, banks, insurance companies, organisations, trusts, corporations and local Institutional investors can buy the bond units through a private placement.

The unit price of the bond will be Tk1 crore. Green Delta Insurance Company Ltd will act as the trustee of the bond while Standard Chartered Bank is mandated as its lead arranger.

The bank was listed in the capital market in 2007. Its paid-up capital is Tk643 crore.

In the first nine months of this year, Trust Bank posted consolidated earnings per share (EPS) of Tk4.08, which was 58.75% higher than the corresponding period of the previous year.

It also paid 5% cash and 5% stock dividends to its shareholders in the 2019 financial year.

Sponsors and directors hold 60% of the bank's shares, while institutional investors have 17.74%, foreign investors 0.58%, and general investors 22.68%.

The last trading price of the company at the Dhaka Stock Exchange was Tk32.10 per share.