BRAC Bank Mandated to Raise BDT 1,500 Crore for City Sugar Industries through Mortgage-Backed Zero Coupon Bond2 min read
BRAC Bank has been entrusted by City Sugar Industries Limited, a flagship concern of City Group and an AAA-rated corporate entity, to facilitate fund mobilization through the issuance of the Teer 100% Mortgage-Backed Zero Coupon Bond worth BDT 1,500 crore (Face Value), according to press release.
The bond issuance is subject to approval from the Bangladesh Securities and Exchange Commission.
This pioneering three-year bond, fully secured and structured to offer an attractive return, is designed to cater to a diverse investor base, including individuals and corporate entities across Bangladesh. By introducing this medium-term financial instrument, the initiative aligns with the evolving risk appetites of institutional and retail investors while contributing to the deepening of the country’s capital market.
The funds raised through this bond will support City Sugar Industries Limited in expanding its trade operations, enhancing cash flow management, and diversifying its financing avenues, thereby reducing dependence on traditional bank credit facilities. Furthermore, it presents a compelling investment opportunity for Bangladesh’s growing investor base, which continues to seek secure, and innovative financial instruments.
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Once approved by the regulatory authority, this landmark transaction will reinforce BRAC Bank’s commitment to market innovation and play a vital role in developing Bangladesh’s corporate bond market, fostering alternative investment opportunities, and enriching financial products.
Tareq Refat Ullah Khan, Deputy Managing Director & Head of Corporate and Institutional Banking at BRAC Bank, and Mohammad Tanvir Hydar Pavel, Director (Finance & Commercial) of City Sugar Industries Limited, signed the agreement on behalf of their respective institutions at the Term Sheet Signing Ceremony at the bank’s head office on February 17, 2025, in the presence of Selim R. F. Hussain, Managing Director & CEO of BRAC Bank, and Md. Hasan, Managing Director of City Group.
From BRAC Bank, Sheikh Mohammad Ashfaque, Deputy Managing Director & Head of Branch Distribution Network; Md. Mahiul Islam, Deputy Managing Director & Head of Retail Banking; and Tanveer Kamal, Head of Structured Finance Unit, were present. From City Group, Reza Uddin Ahmad, Director (Finance & Investments), and Khizir Hayat Khan, Director (Import), also attended.
With this fund mobilization through bond issuance, BRAC Bank continues to spearhead innovative financial solutions that contribute to Bangladesh’s economic growth, industrialization, and employment generation while strengthening its structured finance business vertical in the banking industry.
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