Pubali Bank decides to raise $10cr green bond

Pubali Bank has approved a plan to raise $10 crore through the issuance of a five-year green bond as part of its strategy to strengthen sustainable and environmentally responsible financing.

The decision was taken at a meeting of the bank's board of directors held on Wednesday at its Gulshan corporate branch, according to a price sensitive information disclosure issued on the same day.

On Thursday, the share price of the lender increased by 0.53% to Tk37.80 on the Dhaka stock exchange.

According to the disclosure, the proceeds from the bond will be used to finance projects that contribute to environmental sustainability and support green development initiatives.

The bank said the bond programme will follow the International Capital Market Association (ICMA) Green Bond Principles, which provide internationally recognised guidelines for transparency, disclosure, and reporting in green bond issuance.

In addition, the initiative will comply with guidelines of the International Finance Corporation (IFC) and Bangladesh's sustainable finance policy framework.

The company reported a consolidated earnings per share (EPS) of Tk2.56 for the July-September quarter of 2025, compared with Tk3.43 in the same period a year earlier.

For the January-September period of 2025, the consolidated EPS stood at Tk7.00, slightly higher than Tk6.74 recorded during the same period in 2024.

Through this initiative, the bank aims to channel funds into environmentally responsible sectors such as renewable energy, energy-efficient infrastructure, sustainable agriculture, pollution prevention, and climate-resilient projects. Such investments are considered crucial for supporting the country's transition towards a low-carbon and environmentally sustainable economy.

Green bonds have gained increasing importance globally as financial institutions and investors seek to support projects that address climate change and environmental challenges. In Bangladesh, the concept has gradually been gaining traction as banks and financial institutions expand their focus on sustainable finance in line with policy support from regulators.

The proposed bond issuance, however, will require approvals from the relevant regulatory authorities and will be subject to compliance with applicable rules and regulations before it can be formally launched.

Once approved, the issuance is expected to help Pubali Bank diversify its funding sources while strengthening its commitment to sustainable banking and green investment in Bangladesh.