BRAC Bank, BRAC EPL support CDIP bond issuance
BRAC Bank PLC and BRAC EPL Investments Limited have successfully closed the first ever zero-coupon bond issued by the Centre for Development Innovation and Practices, marking a milestone in Bangladesh's debt market with a face value of Tk 171 crore.
The bond issuance forms part of CDIP's strategic initiative to diversify its funding sources and reduce reliance on traditional financing. By accessing the capital market, the organisation aims to optimise its cost of funds and enhance financial flexibility to further its mission of financial inclusion and poverty alleviation.
The successful subscription reflects growing investor appetite for well-structured non-bank instruments and underscores market confidence in the credit profile of established microfinance institutions. The transaction also contributes to the development of a deeper and more diversified bond market, an important pillar for the long-term maturity of Bangladesh's financial system.
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Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank, said the bank was pleased to support CDIP in its inaugural bond issuance. 'This transaction demonstrates our commitment to delivering innovative structured finance solutions that enable institutions to strengthen their capital base and access sustainable funding,' he said.
Mifta Naim Huda, Executive Director of CDIP, described the issuance as a transformative step for the organisation. 'Issuing our first zero-coupon bond marks a significant milestone for CDIP. The support from BRAC Bank and BRAC EPL Investments has been instrumental in helping us reach a wider investor base,' he said.
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 across the country.
BRAC EPL Investments Limited is one of Bangladesh's leading investment banks, providing services in issue management, corporate advisory, and portfolio management.
A zero-coupon bond is a fixed-income instrument issued at a discount and does not offer periodic interest payments. Investors receive the full face value at maturity.
The successful closure of CDIP's inaugural zero-coupon bond highlights the combined capabilities of BRAC Bank and BRAC EPL Investments in structuring innovative financing solutions that mobilise capital for development initiatives, while offering investors a secure and tax-efficient investment option in Bangladesh's expanding debt market.
