Dhaka Bank yesterday issued a subordinated bond, for the first time, worth Tk 200 crore for expansion and to consolidate its capital base.

The bonds will be amortised and have a tenure of seven years. State-owned and private commercial banks, insurance companies, non-bank financial institutions, corporate offices and development banks have subscribed to the bond through private placement.

Standard Chartered's Dhaka office was the mandated lead arranger of the funds.

The bank will invest the funds in major ongoing projects like expansion of its branch network, establishment of overseas exchange houses and 100 new ATMs all over the country. Depending on availability, the fund will also be used in expanding retail operations and capital market operations.