BRAC Bank's second subordinated bond debut on DSE's ATB platform
The “BRAC Bank 2nd Subordinated Bond” was listed following the signing of a listing agreement between the bank and DSE at the stock exchange’s office in Dhaka today.
BRAC Bank's second subordinated bond started trading on the Alternative Trading Board (ATB) platform of the Dhaka Stock Exchange (DSE) today (12 May), marking another step in the country's bond market expansion.
The "BRAC Bank 2nd Subordinated Bond" was listed following the signing of a listing agreement between the bank and DSE at the stock exchange's office in Dhaka today.
DSE Managing Director Nuzhat Anwar and BRAC Bank Managing Director and CEO Tareq Refayet Ullah attended the signing ceremony along with senior officials from both organisations.
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Trading of the bond commenced under the "P" category on the ATB platform with the trading code "BBL2NDSB" and scrip code "55008".
BRAC EPL Investments Limited acted as the lead arranger of the bond, while UCB Investment Limited served as the trustee.
According to DSE data, the Tk700 crore bond carries a face value and minimum investment of Tk10 lakh per unit. The non-convertible, fully redeemable, unsecured subordinated bond offers a floating coupon rate of 12.59% per annum, payable semi-annually.
Issued on 11 March 2024, the bond currently has a remaining tenure of around four years and 10 months. Repayment will begin annually from the end of the third year from the issue date, specifically on 11 March each year. The DSE approved the listing on 20 April 2026.
The stock exchange has also imposed special circuit breaker rules for the initial trading sessions. A 4% circuit breaker will apply during the first two trading days. On the first day, the limit will be determined based on the present value calculated using at least a 10% annual discount rate, while the second day will use the reference price.
Trading will remain suspended on the third trading day before the regular 5% circuit breaker rule takes effect from the fourth trading day.
Market insiders said the bond would strengthen BRAC Bank's long-term capital base, as subordinated bonds are considered part of regulatory capital and help maintain the capital adequacy ratio required by regulators.
They added that the listing reflects growing interest among banks in raising long-term funds through the capital market instead of relying solely on deposits and conventional borrowing.
DSE's Alternative Trading Board was introduced to facilitate trading of bonds, sukuk, exchange-traded funds (ETFs), alternative investment funds and other non-equity securities, aiming to diversify investment products and support long-term financing in Bangladesh's capital market.
Analysts said the expansion of the corporate bond market through the ATB platform would create more fixed-income investment opportunities for investors and help deepen the country's capital market.
