City Bank is set to raise Tk 400 crore through issuance of perpetual bonds to meet its capital requirement under additional Tier-I Capital.
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.
Earlier in June, the bank got the approval from the Bangladesh Securities and Exchange Commission (BSEC) to begin issuing the bonds.
The approval came during the bank's virtual extraordinary general meeting (EGM), which was held on Tuesday.
During the meeting, City Bank Chairman Aziz Al Kaiser discussed the various challenges persisting in the banking sector due to the pandemic and the consistent attempts to overcome those.
In the third quarter of this year, City Bank posted a profit of Tk 308 crore, up 18 per cent year-on-year, he said.
