United Commercial Bank PLC (UCB) has announced that its Board of Directors has approved the issuance of its sixth subordinated bond worth Tk 1,000 crore, subject to approval from the relevant regulatory authorities.
In a disclosure filed with the stock exchanges, the bank stated that the decision was made at a board meeting held on 19 June 2025. The proposed bond aims to strengthen the bank’s Tier II capital base in accordance with Basel III requirements and support its future business expansion.
Subordinated bonds are a form of long-term debt that ranks below other forms of debt in the event of liquidation but is critical in bolstering a bank’s capital adequacy ratio. UCB’s move signals its intention to maintain a healthy capital structure while ensuring regulatory compliance.
Further details regarding the bond’s tenure, interest rate, and subscription method will be made available following regulatory approvals from the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC).
Market analysts see this as a proactive step by UCB to reinforce its financial resilience amid evolving regulatory frameworks and growing demand for credit in the banking sector.
If approved, the bond issuance will mark another milestone in UCB’s strategic efforts to maintain its competitive position in the country’s banking industry.