The Bangladesh Securities and Exchange Commission (BSEC) has approved a proposal of Dutch-Bangla Bank Ltd (DBBL) for issuance of fully redeemable, non-convertible, unsecured floating rate subordinated bond of Tk 500 crore.

The bond will be issued only under private placement as per provisions of the BSEC (Debt securities) Rules, 2021, the private commercial bank said in a posting on the Dhaka Stock Exchange website.

DBBL also mentioned that a total of 500 bonds will be issued with face value of Tk 1 crore each.

The purpose of this bond is to increase the Tier 2 capital to meet capital requirement under Basel III and to strengthen the regulatory capital base of the bank, it said.