A perpetual bond is a fixed income security with no maturity date and is often considered as a type of equity rather than debt
Pubali Bank has decided to raise Tk 500 crore through issuance of perpetual bonds to meet its capital requirement under additional Tier-I Capital.
The bank informed its intention yesterday at the websites of stock exchanges.
A perpetual bond is a fixed income security with no maturity date and is often considered as a type of equity rather than debt.
These types of bonds are not redeemable but instead provide a never-ending stream of interest payments.
The bank will issue the bonds as Additional Tier-1 (AT-1) capital to support the Basel-III compliance in line with Bangladesh Bank guidelines on risk based capital adequacy dated December 2014.
Issuance of the bonds are subject to the approvals from concerned authorities and complying with regulatory requirements, added the statement.
Pubali Bank posted an earning of Tk 2.94 per share during the first nine months of the last year.
Its stock price closed at Tk 24.7 at the Dhaka bourses yesterday after posting a gain of 0.41 per cent over the trading session.
The bank was listed with the Dhaka Stock Exchange in 1984.