Dhaka, May 29 -- Shahjalal Islami Bank Plc has announced plans to raise Tk 6 billion through its fourth Mudaraba subordinated bond to strengthen its capital base in line with Basel-III compliance, as per Bangladesh Bank's December 2014 guidelines on risk-based capital adequacy

The proposed bond issuance is subject to approval from the relevant regulatory authorities - Bangladesh Bank and the Bangladesh Securities and Exchange Commission, according to a stock exchange filing on Thursday.

The bond will have a tenure of seven years and will be fully redeemable, unsecured, non-convertible, and floating rate in nature.

A subordinated bond is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to cl...