Staff Reporter :
The Bangladesh Securities and Exchange Commission (BSEC) has proposed significant amendments to the Debt Securities Rules, 2021, aiming to strengthen the country’s sustainable finance framework and introduce new classes of bonds.
The draft guidelines now published on BSEC’s website for public consultation until 8 October 2025, outline reporting, monitoring, and disclosure requirements for bond issuers.
The proposed amendments introduce several thematic bonds, including gender bonds, orange bonds, and sustainability bonds, alongside updated provisions for green and social bonds.
These instruments are designed to attract investments into projects promoting environmental sustainability, gender equality, and social development.
Green bonds will now be clearly defined in line with international standards. Funds raised through these bonds can finance renewable energy, clean transport, biodiversity conservation, climate adaptation, and other environmentally beneficial projects.
BSEC also defines eligible “green projects” such as sustainable water and waste management, eco-efficient products, and green buildings, which must demonstrate measurable environmental benefits verified by qualified experts.
Gender bonds are a type of social bond aimed at financing projects that empower women and promote gender equality.
Orange bonds expand the focus to include marginalized communities, linking social inclusion with climate and sustainability objectives.
Sustainability bonds combine features of green and social bonds, funding projects that deliver both environmental and social benefits.
The expanded definition of social bonds now covers projects in affordable housing, health and education services, SME financing for employment generation, and food security initiatives.
These projects must provide measurable benefits to underserved groups, including women, migrants, the unemployed, and communities vulnerable to climate change.
BSEC aims to create a Sustainable Financing Window to attract international investors such as the World Bank and the Asian Development Bank (ADB), who increasingly require projects to be sustainable.
Abul Kalam, BSEC spokesperson, noted, “These guidelines will help build a sustainable economy, contribute to the UN Sustainable Development Goals (SDGs), and align Bangladesh’s financial markets with global standards.”
The draft emphasizes transparency and accountability, requiring issuers to disclose project categories, expected social and environmental impacts, and the allocation of proceeds.
Annual reporting, independent external reviews, and the use of escrow or designated accounts are mandatory. Any change in fund utilization requires prior BSEC approval.
To encourage the market, BSEC proposes a reduced consent fee for sustainable bonds — 0.03percent of the total face value, compared with 0.10percent for regular debt securities.
Hybrid issuances will apply 0.03percent to the sustainable portion and 0.10percent to the general portion, with priority processing for sustainable applications.
Initially planned in 2022, the sustainable bond initiative aims to mobilize up to $1 billion, supporting gender equality, climate resilience, and economic growth.
The Orange Bond concept, discussed with the ERD, UNDP, and IIX, is expected to drive inclusive and resilient economic development, linking private investment to sustainable projects in garments, green infrastructure, and agriculture.
BSEC’s new framework positions Bangladesh to leverage innovative financial instruments for environmental, social, and economic impact, making the country a promising destination for responsible global investment.
