Mutual Trust Bank PLC (MTB) plans to raise Tk500 crore through a seven-year subordinated bond to strengthen its Tier-II capital base, subject to approval from regulatory authorities.
The bank’s board approved the proposal at its 337th meeting held on 25 August, according to a disclosure posted on the Dhaka Stock Exchange (DSE) on Thursday.
The proposed bond may be issued either under an Islamic Shariah-compliant structure or as a conventional subordinated bond, the bank said.
The lender will proceed with the issuance after obtaining approval from the relevant regulatory authorities.
Subordinated bonds are used by banks to strengthen regulatory capital under Basel III requirements, allowing lenders to enhance their capital buffers while supporting future business expansion.
MTB shares, with a face value of Tk10, closed 0.75 per cent lower at Tk13.30 on the Dhaka Stock Exchange on Thursday.
