BRAC Bank announced at a press conference in Dhaka today that it will issue a Tk 1,000 crore green bond to channel long-term debt into industrial energy-efficiency and renewable projects.
The three-year debt instrument carries a face value of Tk 10 lakh per unit and targets a yield of 7.5 percent, priced at roughly Tk 8.05 lakh at issuance under annual compounding.
Led by Managing Director and CEO Tareq Refat Ullah Khan, the private lender is launching the first debt offering in Bangladesh aligned with the central bank’s green bond policy.
The issue will be senior, unsecured, non-convertible, fully redeemable and zero-coupon. Rather than disbursing periodic interest, the bank will sell the paper at a discount and redeem it at par upon maturity.
Corporate institutions, individual investors, and qualifying corporate provident and gratuity funds can subscribe to the tranche. The paper adheres to Bangladesh Bank’s green bond financing guidelines alongside the International Capital Market Association’s Green Bond Principles, backed by a second-party opinion from S&P Global Ratings.
Proceeds will target factory energy retrofits, rooftop solar arrays, and certified green commercial properties. The lender expects the deployment to align with United Nations Sustainable Development Goals covering clean energy, industry innovation, sustainable cities, and climate action.
Export-oriented manufacturing plants and textile suppliers across Bangladesh face steep domestic power tariffs alongside buyer pressure to decarbonise supply chains. Factory owners frequently seek multi-year capital expenditure loans to replace aging machinery with automated, low-emission lines.
Commercial banks usually finance those long-term outlays with short-term customer deposits, creating chronic liquidity strains on balance sheets.
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