BRAC Bank has raised Tk 700 crore through a subordinated bond to strengthen its capital base in line with Basel-III requirements.

The bond will support the bank's capital adequacy as it continues to experience significant balance sheet growth in recent years, the bank said in a statement today.

"This incremental capital has set the platform for the bank to expand its balance sheet at a faster pace than before. It also marks a step forward in developing Bangladesh's bond market," the statement added.

A total of 663 unique investors, including 567 individuals, participated in this long-term subordinated bond.

"BRAC Bank has built a reputation of trust and reliability over the years, which has encouraged investors to place their money with the bank. The full subscription of this bond by a diverse group of individuals and institutions reflects this confidence," said Selim RF Hussain, managing director and CEO of BRAC Bank.

"We extend our gratitude to the investors, regulators, our colleagues, and all stakeholders involved in this success."

BRAC EPL Investments Limited acted as the lead arranger, while the bank's branch distribution, SME MFI team, and corporate banking team contributed to closing the subscription in record time, according to the statement.

The bank believes this bond will help foster a long-term bond market for investors.