BRAC Bank gets nod for country’s first social bond

BRAC Bank has recently received approval from the Bangladesh Securities and Exchange Commission and Bangladesh Bank to issue the country's first-ever social subordinated bond worth Tk 1,000 crore.

The landmark issuance of the BRAC Bank Social Subordinated Bond will strengthen the bank's Tier-II capital under Basel III, according to a press release.

It will also channel funds to cottage, micro, small and medium enterprises (CMSMEs), women-owned businesses, agriculture, food security, affordable housing, and essential services such as healthcare and sanitation.

"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," Tareq Refat Ullah Khan, managing director and chief executive officer of BRAC Bank, said.

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

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