Shahjalal Islami Bank to issue Tk500cr bond

Shahjalal Islami Bank Limited wants to raise Tk500 crore by issuing a third mudaraba subordinated bond and the proceeds will be regarded as Tier-II capital of the issuer, which will help the private sector lender fulfil its Basel-III requirement.

The issuance will require approval of the Bangladesh Securities and Exchange Commission (BSEC) and the Bangladesh Bank, according to Sunday's stock exchange filings.

In September last year, the private lender raised Tk500 crore by issuing a perpetual bond to strengthen its additional tier-1 capital.

The perpetual bond is also being traded on the Dhaka Stock Exchange (DSE) debt board. Shahjalal Islami Bank's bond was traded at Tk4,512 each against its face value of Tk5,000.

Meanwhile, the bank's shares were traded at Tk20.10 each on Sunday on DSE, which was 0.98% lower than the previous session.

Besides, the bank revealed its first quarter financial statement for 2022 on 5 May on the DSE website. It reported that its consolidated earnings per share (EPS) were Tk0.98, which was 58% higher than the previous year in the same period.

The bank said in a statement that the EPS substantially increased compared to the same period of last year due to an increase in the net investment income, income from investments in shares and securities, commission, exchange and brokerage and other operating income.

Earlier, it had paid 10% cash and 5% stock dividends to the shareholders for last year when it posted 35% year-on-year EPS growth.