Press Release
25 October, 2026, 07:00 pm
Last modified: 25 October, 2026, 07:02 pm
BRAC Bank plans to issue a Tk1,000 crore green bond to expand financing for environmentally sustainable projects in Bangladesh, including renewable energy, green buildings, and industrial energy-efficiency initiatives.
The three-year bond will be senior unsecured, non-convertible, fully redeemable and zero-coupon, according to the press release.
The bond reflects the bank's commitment to sustainable finance and Bangladesh's transition towards a greener, more resilient economy. Proceeds will be channelled into eligible green projects.
BRAC Bank described the planned issuance as Bangladesh's first green bond aligned with Bangladesh Bank's Policy on Green Bond Financing for Banks and FIs.
The bond also aligns with the International Capital Market Association's (ICMA) Green Bond Principles, supporting recognised sustainability standards, transparency, and accountability. S&P Global Ratings has issued a second-party opinion on its framework, providing an independent assessment of its green credentials.
Each bond will have a face value of Tk10 lakh and will be offered to corporate institutions and individual investors. Eligible company provident and gratuity funds may also invest, subject to applicable regulations and investment requirements. Interested investors are invited to participate, subject to applicable regulations and investment requirements.
Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank, said, "This green bond marks an important milestone in BRAC Bank's sustainable finance journey and represents a meaningful step towards deepening Bangladesh's capital market. By mobilising capital specifically for eligible green projects, we aim to help businesses access financing for renewable energy, greener buildings and more energy-efficient industrial operations.
"Our ambition goes beyond financing individual projects; we want to contribute to a financial ecosystem in which sustainability is embedded in investment decisions and responsible growth."
The proceeds are expected to contribute to the United Nations Sustainable Development Goals (SDGs), particularly SDG 7: Affordable and Clean Energy; SDG 9: Industry, Innovation and Infrastructure; SDG 11: Sustainable Cities and Communities; and SDG 13: Climate Action.
The issuance builds on BRAC Bank's sustainable finance activities. The bank said it had been recognised among Bangladesh Bank's top sustainable banks for five consecutive years and ranked first among Bangladeshi banks in Bloomberg's ESG Rating.
BRAC Bank said more than 60% of its loan portfolio is dedicated to sustainable finance, reflecting the growing role of sustainability considerations in its financing activities.
Through the green bond, the bank aims to mobilise capital for eligible green investments, broaden financing opportunities for environmentally responsible businesses and support the development of Bangladesh's sustainable finance market.
Prime Bank Investment PLC will act as trustee, while IDLC Investments Limited will serve as issue manager.