The stock market-listed Mercantile Bank PLC is planning to issue another subordinated bond. This bond is known as the Mercantile Bank Third Subordinated Bond. Mercantile Bank previously issued two additional subordinated bonds.
By issuing the proposed bond, the mercantile market will raise Tk 800 crore. With this funding, the bank will fortify its tier-two capital basis.
This decision was made during the Mercantile Bank board of directors’ meeting on Sunday, June 22.

This information was revealed by bank sources.

The source claims that the bond under discussion will be Mercantile Bank’s third subordinated bond. At the conclusion of the term, it will be entirely redeemed. It is not possible to convert the bond into shares. In other words, none of it will be turned into stock. This bond will not be secured by any security. It will have a variable interest rate. Coupon-bearing bonds will be issued. The Bangladesh Securities and Exchange Commission and Bangladesh Bank must approve this bond issuance decision before it can take effect.