City Bank recently raised Tk 700 crore issuing its fourth subordinated bond.

Agrani Bank, Janata Bank, Sonali Bank, Mercantile Bank, National Life Insurance Company and Shimanto Bank subscribed to the bond.

The funds will be used to enhance City Bank's tier-II capital following "Guideline of Risk Based Capital Adequacy" of Bangladesh Bank, thereby increasing its capital to risk-weighted asset ratio, says a press release.

City Bank Capital Resources and IDLC Investments were the lead arranger and trustee of the issue respectively.