BRAC Bank launches landmark social subordinated bond
BRAC Bank has received approval to issue Bangladesh's first Social Subordinated Bond, valued at Tk 1,000 crore.
The landmark issuance of the 'BRAC Bank Social Subordinated Bond', the country's first such financial instrument, distinguishes itself by channelling substantial resources specifically to underserved sectors such as CMSMEs, women-owned businesses, agriculture, food security, affordable housing, and essential services like healthcare and sanitation, all while strengthening the bank's Tier II capital under Basel III.
Developed in line with the International Capital Market Association's Social Bond Principles 2025, the BRAC Bank Social Bond Framework has been independently endorsed by S&P Global Ratings through a Second Party Opinion—another first for Bangladesh. This highlights the bank's commitment to global best practices, transparency, and accountability.
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The initiative builds on BRAC Bank's record in sustainable finance, reflecting its top Bloomberg ESG rating, repeated recognition by the Bangladesh Bank, and a recent regional award for SME financing. Currently, 82% of its loan portfolio is dedicated to sustainable finance.
Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank, said: "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."
