BRAC Bank PLC has announced plans to issue a Tk 1,000 crore social subordinated bond, aiming to strengthen its Tier-II capital base and align with its long-term social impact agenda.

The bank’s board approved the move through a “Resolution by Circulation” on June 4, with a formal disclosure made on the Dhaka Stock Exchange (DSE).

Key Features of the Bond:

• Name: BRAC Bank Social Subordinated Bond

• Amount: Tk 1,000 crore

• Type: Non-convertible, unsecured, fully redeemable, coupon-bearing

• Rate: Floating interest rate

• Tenure: 7 years

• Issuance Method: Private placement

• Purpose: To boost Tier-II capital and support social development projects

• Regulatory Status: Subject to approval by relevant authorities

The bond aligns with BRAC Bank’s dual focus on financial robustness and social responsibility, providing the lender with long-term capital while signaling continued support for inclusive finance and sustainable development.

The announcement comes as the bank reported a 47% year-on-year rise in net profit in Q1 FY2025—earning Tk 4.86 billion crore between January and March. The growth was largely driven by stronger interest and investment income, according to its latest financial disclosures.