Dhaka Bank to raise Tk300cr through Perpetual Bond

Dhaka Bank PLC has decided to raise Tk 300cr through the issuance of a Contingent-Convertible Perpetual Bond to strengthen its capital base in line with Basel III requirements.

The decision was taken at the 510th meeting of the bank’s board of directors held on Thursday at the boardroom of its head office.

According to a disclosure by the bank, the proposed Tk 300cr bonds will be issued as a Contingent-Convertible Perpetual Bond under the AT-1 capital category.

The fund-raising initiative is intended to support the bank’s capital base and enhance its capacity to comply with the regulatory capital requirements under the Basel III framework.

The proposed issuance will, however, be subject to approval from the relevant regulatory authorities, including Bangladesh Bank, Bangladesh Securities and Exchange Commission and other applicable authorities.

AT-1 instruments form part of a bank’s going-concern capital under the Basel III framework.
Such instruments are designed to provide banks with an additional capital buffer to absorb losses while allowing them to maintain operations during periods of financial stress.

Dhaka Bank’s move to raise fresh AT-1 capital comes as banks in Bangladesh continue to strengthen their capital positions to meet risk-based capital adequacy requirements.

The issuance, once approved and completed, will increase the bank’s regulatory capital base and provide additional room to support its business operations and future growth.

The bank did not disclose in its announcement the proposed coupon rate, maturity terms, conversion triggers or other detailed terms of the bond. Those terms are expected to be finalised in accordance with regulatory requirements and the approvals governing the proposed issuance.

Listed in 2000, Dhaka Bank’s stock closed at Tk 12.30 on Thursday, shedding 0.81 per cent over the previous day.

Meanwhile, the bank’s consolidated earnings per share (EPS) dropped to Tk 0.95 for January-June 2026, from Tk 1.09 (restated) in the same period last year due to decrease in operating income and higher amount of income tax provision during the reporting period.