Dhaka Bank PLC has decided to raise Tk300 crore through issuing a Contingent-Convertible Perpetual Bond as Additional Tier-I (AT-1) capital to strengthen its regulatory capital base.
Unlike conventional bonds that have a fixed maturity period, perpetual bonds do not carry a specific repayment date.
As an AT-1 instrument, the proposed bond is designed to serve as a long-term capital buffer for the bank and support compliance with risk-based capital requirements under Basel-III guidelines.
The bank’s Board of Directors approved the issuance at a meeting on 13 August 2026, subject to approval from regulatory authorities, according to a regulatory disclosure on the Dhaka Stock Exchange on Sunday.
The contingent-convertible feature means the instrument can absorb losses or be converted into equity under specified regulatory conditions. The exact terms of conversion and other conditions will depend on regulatory approval.
The proposed bond issuance will support Dhaka Bank’s capital requirements under Basel-III guidelines issued by Bangladesh Bank, which set capital adequacy standards for banks.
The issuance will proceed after obtaining necessary regulatory approvals, the bank said.
