Home Corporate news Bank BRAC Bank gets approval for Bangladesh’s first social bond issuance

BRAC Bank gets approval for Bangladesh’s first social bond issuance

Staff Correspondent
Dhaka | October 2, 2025

BRAC Bank has secured approval from the Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank to issue the country’s first social subordinated bond, opening a new chapter in sustainable financing. The Tk 1,000 crore bond, to be known as “BRAC Bank Social Subordinated Bond,” will add strength to the bank’s Tier-2 capital and broaden its capacity to support critical sectors such as small and medium enterprises (SMEs), women entrepreneurship, agriculture, food security, affordable housing, healthcare, and sanitation.

The framework for the bond has been developed in accordance with the ICMA Social Bond Principles 2025, ensuring compliance with international standards. It also received a second-party opinion from S&P Global Ratings, marking the first time a Bangladeshi bank’s bond framework has been recognized in this way. Market observers say this sets a precedent for future sustainable financial instruments in the country.

BRAC Bank has long positioned itself as a leader in sustainability-driven banking. It was ranked number one in Bangladesh in Bloomberg’s ESG Rating 2024, and for five consecutive years has been named the Top Sustainable Bank by Bangladesh Bank’s Sustainability Rating. In addition, at the Global SME Finance Awards 2025, the bank received the award for Sustainable SME Financier of the Year – Asia. According to the bank, 82 percent of its current loan portfolio is already directed towards sustainable financing sectors.

“This bond is an important milestone for us,” said Tareq Refat Ullah Khan, Managing Director & CEO of BRAC Bank. “It will empower SMEs, accelerate women entrepreneurs, strengthen food security, and improve access to healthcare and housing.”

Industry insiders believe the move will enhance confidence in Bangladesh’s capital market and open opportunities for other financial institutions to pursue similar instruments in line with global sustainable finance practices. For BRAC Bank, the initiative further solidifies its position as a frontrunner in promoting transparency, accountability, and international best practices in the country’s banking sector.