Jamuna Bank PLC has formally announced the issuance of its fifth subordinated bond, valued at Tk 800 crore, marking another significant milestone in the bank’s long-term capital enhancement strategy. The announcement was made through an official statement circulated to the media, highlighting the bank’s continued efforts to align its financial instruments with international regulatory standards.
The newly issued bond features a floating interest rate, designed to remain responsive to market dynamics. As of November 2025, the annual return stands at 12.65 per cent, offering investors an attractive blend of stability and flexibility in an evolving financial landscape.
Inauguration Ceremony and Senior Representation
The inauguration ceremony was attended by an array of distinguished bank officials.
Md Belal Hossain, Chairman of Jamuna Bank PLC, graced the event as the Chief Guest, underscoring the bank’s strong leadership involvement in strategic financial initiatives.
He was joined by:
Mirza Elias Uddin Ahmed, Managing Director and CEO
Members of the Board of Directors
Senior executives and departmental heads
Their presence reinforced the importance placed on strengthening the institution’s capital adequacy and broadening its investment instruments.
A Secure Vehicle for Long-Term Investment
In his remarks, Chairman Md Belal Hossain emphasised that the subordinated bond would play a pivotal role in bolstering Jamuna Bank’s Tier 2 capital base. He noted that such instruments not only enhance regulatory capital but also help the bank maintain resilience during economic fluctuations.
Hossain further explained that the bond’s low-risk profile, paired with its consistent return, makes it an appealing choice for investors seeking long-term security and diversification within their portfolios. Subordinated bonds, he added, are increasingly recognised as essential tools for strengthening banking sector stability.
Bond Structure and Repayment Features
The statement provided detailed insight into the repayment structure of the seven-year bond. Key features include:
Tenure: 7 years
Principal repayment: Five equal instalments
Repayment commencement: End of the third year
Return type: Floating interest rate
Risk-mitigation mechanisms: Structured in accordance with international standards
This approach ensures that investors receive predictable repayment schedules while the floating rate allows for adjustments that reflect prevailing economic conditions.
Boosting Investor Confidence
Jamuna Bank expressed confidence that the bond’s transparent repayment system, market-responsive return, and robust risk management design will significantly enhance investor trust. The issuance reflects the bank’s broader commitment to introducing stable and forward-looking financial products that support both institutional strength and investor interests.
With the launch of this Tk 800 crore subordinated bond, Jamuna Bank PLC has reaffirmed its position as a forward-thinking financial institution, committed to sustainable growth, strong capital foundations, and investor-friendly innovation.
JD