BRAC Bank has successfully raised a Subordinated Bond worth BDT 700 crore to enhance its capital base as per Basel-III requirements, according to press release.
The bond will support the bank’s capital adequacy requirements, as the bank has earned significant balance sheet growth in recent years. This incremental capital has set the platform to grow the bank’s balance sheet at a higher pace than before. This is also a step forward in developing the bond market in Bangladesh.
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BRAC Bank has seen deep interest from all customer segments in investing in this bond. A total of 663 unique investors, including 567 individuals, invested in this long-term subordinated bond. Given that the bond is issued by one of the strongest banks in the country, which holds the highest credit rating from both local and international rating agencies, investors felt confident in making a long-term investment, said in a press release.
Commenting on the full subscription of the bond, Selim R. F. Hussain, Managing Director & CEO, BRAC Bank, said, “BRAC Bank has earned trust and reliability to a level over the years where the investors can trust their money with the bank. This full subscription of the bond by diverse groups of individuals and institutions reflects this trust. We would like to thank the investors, regulators, our colleagues and all the stakeholders involved in this success.”
BRAC EPL Investments Limited has acted as the lead arranger while the bank’s Branch Distribution, SME MFI Team and Corporate Banking Team contributed to close the subscription in the shortest possible time. This bond will help create a long-term bond market for investors.
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