Bank Asia PLC board of directors approved the issuance of a Tk1,000 crore green sustainable subordinated bond to strengthen its regulatory capital base and finance environmentally sustainable projects.
The bank’s board approved the proposal at its 584th meeting held on Wednesday, according to a corporate disclosure published on Thursday.
The proposed bond will be non-convertible, unsecured, fully redeemable and coupon-bearing with a floating interest rate structure.
The seven-year bond will be issued through private placement, subject to approval from the relevant regulatory authorities.
Bank Asia said the proceeds will be used to strengthen its Tier-II regulatory capital in line with Basel III requirements and to finance eligible green and sustainable initiatives.
Subordinated bonds are typically used by banks to bolster capital adequacy while supporting long-term lending capacity.
Bank Asia shares, with a face value of Tk10, rose 0.51 per cent to close at Tk19.6 apiece on the Dhaka Stock Exchange on Thursday.
