BSEC okays Tk 158.5cr Orange bond

The Bangladesh Securities and Exchange Commission (BSEC) has approved the country’s first-ever Orange bond, to be issued by SAJIDA Foundation, aiming to raise Tk 158.5 crore to support women’s economic empowerment and advance gender equality.

According to a press release from BRAC EPL Investments Ltd, the zero-coupon bond—sold at a discounted price without periodic interest payments—represents a significant step forward in the development of Bangladesh’s capital market.

SAJIDA Foundation has teamed up with BRAC EPL Investments Ltd and Singapore-based Impact Investment Exchange (IIX) to launch the bond.

The Orange bond is a specialised financial instrument designed to channel funds into initiatives that benefit women, girls, and gender minorities, while also addressing climate challenges.

“The innovative bond will help promote inclusive, resilient, and market-based development financing, while strengthening Bangladesh’s growing impact investment ecosystem,” the press release said.

BRAC EPL Investments noted that Bangladesh’s bond market has traditionally been dominated by government securities and bank subordinated debt.

This initiative introduces a new category of thematic, impact-focused fixed-income instruments, marking a departure from conventional structures.

The bond will provide investors with tax-exempt returns alongside measurable social outcomes, particularly by supporting women entrepreneurs and women-led enterprises.

Of the total proceeds, around 48 percent will be directed towards food security and agriculture, 32 percent to women-led small and medium enterprises (SMEs), and the remaining 20 percent will fund climate-resilient housing projects across 36 districts.

The impact of the investment will be monitored through independently verified annual reports aligned with global standards, ensuring transparency and meaningful progress in advancing women’s economic empowerment.