City Bank today announced its plan to raise Tk 800 crore through issuing a bond to strengthen its capital base.

The private lender will issue the subordinated bond—a type of bond that is paid back after other bonds if the issuer has financial difficulties—to meet capital requirements under the Basel-III accord, which aims to strengthen the regulation, supervision, and risk management of banks.

The bond is also planned to support the business growth of the bank, according to a disclosure by City Bank on the Dhaka Stock Exchange (DSE).

The issuance is subject to approvals from the Bangladesh Securities and Exchange Commission, Bangladesh Bank, and other regulators, the bank said.

Shares of City Bank remained unchanged at Tk 22.80 in mid-day trading today on the DSE.