EBL to raise Tk800cr thru bond

Business Desk :

Eastern Bank PLC (EBL) is set to raise Tk 800 crore through the issuance of a subordinated bond aimed at strengthening its capital base.

According to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday, the bank will now issue a zero-coupon subordinated bond via private placement, revising its earlier plan to offer a floating-rate subordinated bond.

Unlike floating-rate subordinated bonds, which provide periodic interest payments tied to a benchmark rate, zero-coupon subordinated bonds are offered at a discount and pay no interim interest, maturing at full face value.

This bond issuance is pending approval from the relevant regulatory bodies. EBL initially announced its intention to issue the subordinated bond on May 13.
Following the announcement, EBL’s share price edged up by 0.41 percent to reach Tk 24.70 on the DSE.

In another disclosure, the bank revealed that its board has approved the establishment of a not-for-profit organisation named “EBL Foundation”.