Trust Bank to invest Tk9.1cr in Trust Axiata Digital
The Trust Bank Limited (TBL) — a private sector lender — will inject Tk9.1 crore of fresh funds in Trust Axiata Digital Limited — a joint venture mobile financial services company.
The purpose of this investment is to strengthen Trust Axiata's capital base and expand its business, stated the bank's disclosure on the Dhaka Stock Exchange (DSE) website on Tuesday.
The bank also disclosed that its board decided to issue a Tk400 crore subordinate bond to strengthen the bank's capital base.
Keep updated, follow The Business Standard's Google news channel
The issuance of the "TBL fully redeemable non-convertible unsecured subordinated bond-VI" is subject to approval of the regulatory authorities, the disclosure added.
Established in 2020, Trust Axiata Digital is a joint venture of Trust Bank and Axiata Digital Services, Malaysia — a service arm of Axiata Group Berhad.
Trust Bank holds 51% and Axiata Digital Services a 49% stake in the company.
Trust Bank got listed on the stock exchanges in 2007.
In the first nine months of 2021, its net profits rose 6% compared to the same period in 2020.
During the January to September period, its profits rose to Tk277.87 crore, from Tk262.64 crore in the same period a year ago.
In 2020, the bank's annual profits stood at Tk180.20 crore.
On Tuesday, its DSE share price slipped 0.86% and stood at Tk34.4 each, compared to the previous trading session.
