EBL to issue Tk 800 crore bond

Eastern Bank PLC (EBL) will raise Tk 800 crore through a subordinated bond to strengthen its capital. 

The zero-coupon bond will be issued through private placement, revising its earlier decision to issue a floating-rate subordinated bond, said the EBL in a disclosure on the Dhaka Stock Exchange (DSE) website today.

A floating rate subordinated bond pays periodic interest based on a benchmark rate, while a zero-coupon subordinated bond pays no interest and is issued at a discount, maturing at face value.

The issuance is subject to approval from the relevant regulatory authorities. The bank had first announced plans to issue the subordinated bond on May 13.

Shares of the bank rose slightly by 0.41 percent to Tk 24.70 on the DSE. 

In a separate disclosure, EBL said its board also approved the formation of a not-for-profit entity named "EBL Foundation".

The private commercial lender reported a 7 percent year-on-year rise in profit to Tk 659.9 crore in 2024, with its board recommending a 17.50 percent cash dividend and a 17.50 percent stock dividend for shareholders.

As of June 30, 2025, sponsor-directors held 31.44 percent of EBL shares, institutions 43.44 percent, and the rest by foreign investors and the general public, as per DSE data.