Business Desk :
Trading of the City Bank’s perpetual bond has been started on Monday on the Dhaka Stock Exchange under settlement category “N”. DSE trading code for City Bank Perpetual Bond is “CBLPBOND”, while scrip code is 26011.
A perpetual bond is a hybrid security with no maturity date that has characteristics of both debt and equity. These types of bonds are not redeemable; instead provide a never-ending stream of interest payments.
City Bank, a publicly listed private commercial bank initiated the issuance process of the bond in 2019. It was a first-of-its-kind instrument that was never seen in the country before.
With approvals from Bangladesh Bank and Bangladesh Securities and Exchange Commission on August 19, 2020 and December 9, 2020 respectively, the bank completed successful subscription of Tk 4.0 billion on March 07, 2021 through private placement.
IDLC Investments Limited is the trustee of the bond while City Bank Capital Resources Limited is the arranger of the bond. Bangladesh Securities and Exchange Commission on May 23, 2021 and March 23, 2022 amendment gave directives to list the bond in the main board of exchange(s).
In accordance with the directives, the bank applied and received subsequent approvals from the DSE regarding listing of the bond on January 18, 2022.
The bond is unsecured, contingent-convertible, fully paid-up, non-cumulative and BASEL-III compliant. The coupon range of the bond is from 6 per cent to 10 per cent and the coupon margin is 2 per cent.
The bank’s consolidated earnings per share (EPS) stood at Tk 5.15 as on December 31, 2021 as against Tk 4.09 as on December 31, 2020. The bank’s paid-up capital was Tk 10.67 billion and authorised capital is Tk 15.00 billion at the end of 2021.
Marking the commencement, an inaugural ceremony was held at Dhaka Stock Exchange Tower. Tarique Amin Bhuiyan, Managing Director of Dhaka Stock Exchange, Sheikh Mohammad Maroof, Acting Managing Director, Mohammad Mahbubur Rahman, Additional Managing Director & CFO of City Bank and Ershad Hossain, Managing Director & CEO of City Bank Capital Resources Limited, among others, were present.
