BRAC Bank secures approval for BD’s first social bond

Business Desk :

BRAC Bank has secured approval from the Bangladesh Securities and Exchange Commission and Bangladesh Bank to issue the country’s first-ever Social Subordinated Bond, valued at BDT 1,000 crore, according to a press release.

The landmark issuance of the ‘BRAC Bank Social Subordinated Bond’ will strengthen the bank’s Tier-II capital under Basel III while channelling funds to CMSMEs, women-owned businesses, agriculture, food security, affordable housing, and essential services such as healthcare and sanitation.

Developed in line with the International Capital Market Association’s Social Bond Principles 2025, the BRAC Bank Social Bond Framework has been independently endorsed by S&P Global Ratings through a Second Party Opinion – another first for Bangladesh. This underscores the bank’s commitment to global best practices, transparency, and accountability.

The move further consolidates BRAC Bank’s reputation as a leader in sustainable finance, following its No.1 Bloomberg ESG rating 2024, five-time recognition as Top Sustainable Bank by Bangladesh Bank, and recent ‘Sustainable SME Financier of the Year – Asia’ award. Currently, 82 per cent of the bank’s loan portfolio is dedicated to sustainable finance.

Tareq Refat Ullah Khan, ManagingDirector and CEO of BRAC Bank, said: “This pioneering bond reflects our commitment to empowering CMSMEs, advancing women entrepreneurs, ensuring food security, and expanding access to essential services. We aim to inspire the wider market to embrace sustainability-driven innovation.”