City Bank revises subordinated bond issue plan

City Bank PLC has revised its plan to issue a subordinated bond, increasing the value to Tk 1,200 crore from Tk 800 crore to meet its capital requirements and support business growth.

The bank's board approved the updated features and issuance of the bond through a circular resolution on September 11, subject to clearance from the Bangladesh Securities and Exchange Commission, Bangladesh Bank, and other relevant regulators.

The bank shared the information through a disclosure on the Dhaka Stock Exchange (DSE) website today.

Earlier, on February 9, the board had decided to issue a subordinated bond worth Tk 800 crore at purchase value, according to a price-sensitive information notice disseminated by the DSE on February 10.

However, the bank has now modified several features of the bond in line with current market conditions and recommendations, it added.

City Bank reported higher profits in the second quarter of 2025, driven by strategic investments in government securities that boosted its investment income.

The private commercial lender posted a profit of Tk 235.78 crore in the April–June quarter, marking a 34 percent year-on-year rise.

As of August 31, 2025, sponsor-directors held 30.36 percent of City Bank's shares, while institutional investors owned 20.96 percent, foreign investors 6.77 percent, and the general public 41.91 percent, according to DSE data.