Al-Arafah Islami Bank allowed to issue Tk500cr bond
Stocks
The Bangladesh Securities and Exchange Commission (BSEC) yesterday allowed Al-Arafah Islami Bank Limited to issue a subordinated bond worth Tk500 crore which will be traded on the Alternative Trading Board of the stock exchanges.
According to a BSEC press release, the bank will issue the bond for seven years and its face value will be Tk5 lakh per unit.
Currently, the local bond market is dominated by subordinated bonds, mostly issued by banks, which help lenders build their mandatory Tier-2 capital base within a specific tenure.
First Security Islami Capital and Investment Limited will act as the bond's trustee, where UCB Investment and Prime Bank Investment will be lead arrangers, read the press release.
Al-Arafah Islami Bank listed on the capital market in 1998.
In the first half of 2022, the bank's consolidated earnings per share stood at Tk1.17, which was slightly higher compared to the same period last year.
It declared a 15% cash dividend to its shareholders for 2021.
The last trading price of each share of the bank at the Dhaka Stock Exchange was Tk23.80 on Wednesday.
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