Bangladesh Securities and Exchange Commission (BSEC) has approved Islami Bank's fourth subordinated bond worth Tk 800 crore.

Tenure of the mudaraba bond is seven years and it would be redeemable and non-convertible.

The bond will have floating rate, which would the latest six months' deposit rate of shariah-based banks and additional 2 per cent.

Face value of each unit of the bond is Tk 10 lakh.

The fund would be raised through private placement among institutional investors and high-net-worth individual investors.

With the bond proceeds, it would strengthen its capital base.

DBH Finance PLC will work as the trustee of the bond.