Written by The Banking Post
Eastern Bank PLC (EBL) has announced plans to raise Tk 800 crore through the issuance of a subordinated zero-coupon bond, aiming to bolster its capital base.
Bond Shift In a disclosure posted on the Dhaka Stock Exchange (DSE) today, EBL stated that the bond will be issued via private placement, marking a strategic shift from its previously announced plan to issue a floating-rate subordinated bond. Unlike floating-rate bonds that offer periodic interest payments tied to a benchmark rate, zero-coupon bonds are sold at a discount and redeemed at full face value upon maturity—without interim interest payments.
Pending Approvals The issuance remains subject to approval from relevant regulatory bodies. The bank initially proposed the bond issuance on May 13.
Market Reaction EBL shares edged up by 0.41 percent to Tk 24.70 during today’s trading session on the DSE.
Social Commitment In a separate filing, EBL revealed that its board has sanctioned the creation of a non-profit organization named EBL Foundation, dedicated to driving social impact initiatives.
Strong Financials & Dividend Declaration The bank posted a robust 7 percent year-on-year profit growth in 2024, totaling Tk 659.9 crore. The board has proposed a 17.50 percent cash dividend along with a 17.50 percent stock dividend for shareholders.
Shareholding Snapshot As of June 30, 2025, sponsor-directors held 31.44 percent of EBL’s shares, institutions 43.44 percent, with the remainder owned by foreign investors and the general public, according to DSE data.
