Eastern Bank is going to issue a non-convertible unsecured floating rate fully-redeemable subordinated bond worth Tk 500 crore.

Today, the lender got go-ahead from Bangladesh Securities and Exchange Commission (BSEC) to issue the bond.

The permission was given in a commission meeting at its own office in the capital.

The coupon rate of the bond will be 6 per cent to 9 per cent and the face value of each unit is Tk 1 crore.

The bond would be issued among financial institutions, insurance companies, institutional investors, corporate, high-net worth people through private placement.

With the bond proceeds, EBL would strengthen its tier-2 capital base and invest in traditional business.

The BSEC has attached a condition of listing the bond in the alternative trading board.

UCB Investments is the trustee of the bond.