BRAC Bank and BRAC EPL Investments have successfully closed the first-ever Zero-Coupon Bond issued by the Centre for Development Innovation and Practices (CDIP), marking a significant milestone in Bangladesh's debt market with a face value of BDT 171 crore, says a press release.
The bond was issued as part of CDIP's strategic initiative to diversify its funding sources and reduce dependence on traditional sources of financing.
By tapping into the capital market, CDIP aims to optimise its cost of funds and enhance its financial flexibility to better serve its mission of financial inclusion and poverty alleviation.
CDIP is a Bangladesh-based non-profit organisation implementing innovative development programmes aimed at improving the lives of disadvantaged communities. Since launching its microcredit operations, the organisation has reached more than 330,000 members and their families nationwide.
BRAC EPL Investments Limited, one of Bangladesh's leading investment banks, provides comprehensive services in issue management, corporate advisory, and portfolio management.
A zero-coupon bond is a fixed-income instrument issued at a discount, offering no periodic interest, with investors receiving the full-face value at maturity.
