Business Desk :
The United Commercial Bank (UCB) has decided to issue the fifth subordinated bond worth Tk 1,000 crore for seven years to strengthen the capital base of the lenders.
The Dhaka Stock Exchange (DSE) disclosed the decision of the bank on its website on Wednesday.
Subordinated debt is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full. According to the DSE disclosure, the bond is unsecured, non-convertible, and redeemable. The bond would be issued as a part of Tier-II Regulatory Capital subject to the approval of regulatory authorities, it said.
