BRAC Bank to issue Tk 1,000cr green bond, first in Bangladesh

BRAC Bank is set to issue a Tk 1,000 crore green bond to expand access to financing for environmentally sustainable projects in Bangladesh.

The three-year bond will be senior-unsecured, non-convertible, fully redeemable and zero-coupon. Proceeds will be channeled towards eligible green projects, including renewable energy, green buildings and industrial energy-efficiency initiatives, says a press release. 

The issuance is positioned as the first green bond in Bangladesh aligned with Bangladesh Bank’s Policy on Green Bond Financing for Banks and FIs. It is also aligned with the Green Bond Principles of the International Capital Market Association (ICMA), reflecting the bank’s commitment to recognise sustainability standards, transparency and accountability. The bond framework has received a second-party opinion from S&P Global Ratings, adding an independent assessment of its green credentials.

The bond will have a face value of BDT 10 lakh and will be offered to corporate institutions and individual investors. Eligible company provident and gratuity funds may also invest, subject to applicable regulations and investment requirements. 

Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank, said: “This green bond marks an important milestone in BRAC Bank’s sustainable finance journey and represents a meaningful step towards deepening Bangladesh’s capital market. By mobilising capital specifically for eligible green projects, we aim to help businesses access financing for renewable energy, greener buildings and more energy-efficient industrial operations.

The proceeds are expected to contribute to the United Nations Sustainable Development Goals (SDGs), particularly SDG 7: Affordable and Clean Energy; SDG 9: Industry, Innovation and Infrastructure; SDG 11: Sustainable Cities and Communities; and SDG 13: Climate Action.

Prime Bank Investment PLC will act as trustee, while IDLC Investments Limited will serve as issue manager.