Southeast Bank Limited has announced the issuance of a fully redeemable, non-convertible, unsecured, floating-rate subordinated bond as part of its efforts to enhance the bank鈥檚 Tier-II capital.
The board of directors of the bank recently approved the issuance of this bond, and the decision was disclosed through a Dhaka Stock Exchange filing on Sunday.
Initially, the bank had proposed issuing a Tk 500 crore subordinated bond for a tenure of seven years.
However, after assessing its long-term capital requirements, the board decided to increase the issue size to Tk 1,000 crore to better support the bank鈥檚 future growth and strengthen its overall capital position.
The subordinated bond, which will form part of the bank鈥檚 Tier-II capital, is expected to play a key role in enhancing its regulatory capital base.
The floating-rate nature of the bond suggests that the interest rate will fluctuate based on market conditions.
However, further details, including the specific terms and interest rates, will be disclosed after receiving necessary regulatory approvals.
The issuance will proceed only after obtaining approvals from the relevant regulatory authorities, as stated in the disclosure.
Once issued, the bond will be fully redeemable, providing a clear timeline for the bank to repay its obligations.
This bond will mark the sixth such issuance by Southeast Bank Limited as it continues its efforts to strengthen its capital structure and ensure compliance with regulatory capital requirements.
