Brac Bank to issue Tk700 crore bond

Brac Bank Limited has decided to raise Tk700 crore through issuing a subordinated coupon bearing bond in the capital market.

The private sector lender, in its Dhaka Stock Exchange (DSE) filing on Thursday, said it will be able to strengthen its Tier-II capital base through the bond, which will be issued for seven years, subject to the approval by the regulatory authorities.

Meanwhile, in the first quarter (January-March) of this year, the bank's consolidated earnings per share grew by 25% year-on-year and stood at Tk0.96.

Last year, its net profit increased by more than 32% year-on-year and stood at Tk612 crore. In that year, the bank paid 7.5% cash and 7.5% stock dividends to its shareholders.

In an earnings disclosure event, Brac Bank's Managing Director and CEO Selim RF Hussain thanked the strong growth in balance sheet that referred to more deposit mobilisation and more lending or investing.

"In 2022, the bank significantly upgraded its digital services and customer propositions. We plan to continue this momentum and double our business by 2025," he added.

The bank's non-performing loans decreased to 3.72% at the end of 2022, from 3.9% a year ago.

Its shares traded at the floor price of Tk35.8 each at the DSE on Thursday.