BRAC Bank has secured approval from the Bangladesh Securities and Exchange Commission and Bangladesh Bank to issue the country鈥檚 first-ever Social Subordinated Bond, valued at Tk1,000 crore.
The landmark issuance of the 鈥楤RAC Bank Social Subordinated Bond鈥� will strengthen the bank鈥檚 Tier-II capital under Basel III, said a press release issued on Wednesday.聽
It will also channel funds to CMSMEs (Cottage, Micro, Small, and Medium Enterprises), 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鈥檚 Social Bond Principles 2025, the BRAC Bank Social Bond Framework has been independently endorsed by S&P Global Ratings through a Second Party Opinion 鈥� another first for Bangladesh.
The move consolidates BRAC Bank鈥檚 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 鈥楽ustainable SME Financier of the Year 鈥� Asia鈥� award.
Currently, 82 per cent of the bank鈥檚 loan portfolio is dedicated to sustainable finance.
BRAC Bank managing director and chief-executive-officer Tareq Refat Ullah Khan said, 鈥楾his pioneering bond reflects our commitment to empowering CMSMEs, advancing women entrepreneurs, ensuring food security, and expanding access to essential services.鈥�
