BRAC Bank to issue Tk 1,000 crore bond

BRAC Bank PLC, one of the leading private commercial banks in the country, has announced that its board has approved the issuance of a Tk 1,000 crore social subordinated bond.

The bond will be issued to enhance its Tier-II capital base and reaffirm its commitment to social development initiatives.

The decision was made on June 4, through a "Resolution by Circulation," according to a disclosure of the bank published on the Dhaka Stock Exchange website yesterday.

The proposed instrument, titled "BRAC Bank Social Subordinated Bond," will be a non-convertible, unsecured, fully redeemable, coupon-bearing, floating rate bond with a tenure of seven years.

The bond will be issued through private placement, the disclosure added.

BRAC Bank said the issuance is subject to the necessary approvals from the relevant regulatory authorities.

The private lender posted higher profits in the first quarter of its financial year 2025, driven by increased investment and interest income.

The bank's net profit rose 47 percent year-on-year to Tk 486.33 crore in the January-March quarter, according to its financial statements.

As of March 31, 2025, sponsors and directors held 46.17 percent of the bank's shares. Institutions owned 14.24 percent, foreign investors 31.97 percent, and the general public 7.62 percent.