Eastern Bank to issue Tk 500 crore subordinated bond

Eastern Bank has decided to issue its third subordinated bond, worth up to Tk 500 crore for seven years, in a bid to enhance the company's capital base.

The bond would be non-convertible, non-listed, and redeemable, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Wednesday.

Banks, financial institutions and corporates are increasingly raising funds through the issuance of bonds and sukuk in recent years.

From July to December in 2021, 16 companies got approval to raise funds of Tk 8,826 crore bonds and sukuk, according to data from the Bangladesh Securities and Exchange Commission (BSEC).

In most cases, banks and non-bank financial institutions are issuing bonds for regulatory purposes while other corporates find them as new tools for fundraising, according to a BSEC official.

"The BSEC is working with a great focus to strengthen the bond market and the entrepreneurs will get its benefits," he said.

Stocks of EBL traded at Tk 38.50 at the DSE on Wednesday. Its paid-up capital was Tk 953 crore, market data showed.