Exim Bank Ltd today said its board has approved a proposal to issue a Tk 600 crore mudaraba subordinated bond.

In a filing on the Dhaka Stock Exchange, the Shariah-compliant bank said the board has accorded its approval for the issuance of Mudaraba Subordinated Bond (5th Issue) as a process of inclusion in Tier-II capital as "subordinated debt", for a period of seven years through private placement.

Subordinated debt is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings.