STAR BUSINESS REPORT

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 EBL in a disclosure on the Dhaka Stock Exchange (DSE) website yesterday.

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.

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 were held by foreign investors and the general public, as per DSE data.