Five private commercial banks in Bangladesh have received regulatory approval to collectively raise Tk 3,500 crore through bond issuances aimed at bolstering their capital bases and expanding lending capabilities. The Bangladesh Securities and Exchange Commission (BSEC) granted the approvals during a meeting chaired by Chairman Masud Khan on September 29, 2026.
The authorized instruments include subordinated bonds from One Bank, Southeast Bank, Al-Arafah Islami Bank, and Bank Asia, in addition to a zero-coupon green bond from BRAC Bank. All bonds will be offered via private placement to institutional investors and high-net-worth individuals before being listed on the country’s main stock exchanges.
One Bank has been permitted to issue an unsecured, non-convertible, fully redeemable floating-rate subordinated bond totaling Tk 400 crore. The bond will carry a coupon rate equal to a reference rate plus 3 percent, with units priced at Tk 100,000 each. Proceeds will be used to strengthen the bank’s Tier-II capital buffer in line with Basel III regulatory requirements. Green Delta Capital will serve as trustee for the bond, while UCB Investment will act as issue manager.
Southeast Bank’s approved offering consists of a seven-year subordinated bond valued at Tk 800 crore. It also features a coupon rate of the reference rate plus 3 percent, with each unit priced at Tk 500,000. The funds raised will support the enhancement of the bank’s Tier-II capital. DBH Finance PLC will be trustee, and UCB Investment will manage the issuance.
BRAC Bank received permission to raise Tk 1,000 crore through a three-year unsecured, non-convertible, zero-coupon green bond. Unlike conventional bonds that pay periodic interest, this instrument will be sold at a discount and redeemed at face value upon maturity, with an estimated discount rate of 8.5 percent. Units will have a face value of Tk 1,000,000. The bond is targeted at corporate entities, provident and gratuity funds, and high-net-worth investors. Proceeds will finance low-cost green loans to clients, supporting sustainable development goals. Prime Bank Investment will act as trustee, with IDLC Investments as issue manager.
Al-Arafah Islami Bank’s bond issuance involves a seven-year subordinated bond worth Tk 500 crore carrying a coupon rate of the reference rate plus 3 percent. Units will be priced at Tk 500,000. The issuance aims to augment the bank’s Tier-II capital base. DBH Finance will serve as trustee, while UCB Investment will manage the issue.
Bank Asia’s approved plan includes a seven-year unsecured, non-convertible, fully redeemable, floating-rate sustainable subordinated bond with a face value of Tk 800 crore. The bond carries a coupon rate of the reference rate plus 3 percent, with units priced at Tk 1,000,000. Funds will be used to reinforce Tier-II capital and to finance environmentally sustainable refinancing projects. DBH Finance is designated trustee, with Prime Bank Investment as the issue manager.
These bond issuances reflect ongoing efforts by Bangladeshi banks to comply with Basel III capital adequacy standards and to promote sustainable finance initiatives in the country’s banking sector.