The Bangladesh Securities and Exchange Commission (BSEC) on Monday approved the country’s first-ever orange bond, a Tk158.5 crore non-convertible, fully redeemable, unsecured, zero-coupon bond issued by Sajida Foundation.
The approval was communicated following the 1,006th emergency commission meeting held by BSEC.
An orange bond is a type of bond designed to raise funds for social and environmental causes. It focuses on women’s empowerment and sustainable development.
In this case, the proceeds will strengthen Sajida Foundation’s microfinance portfolio, especially targeting financial inclusion for women entrepreneurs in Bangladesh.
Due to its zero-coupon structure, the bond will have no interest payments but will be sold at a discount. Investors will receive the full face value when it matures.
Since the bond is non-convertible, it cannot be exchanged for equity shares of the foundation.
Fully redeemable means investors will get back the full amount they invested at the end of the bond’s term.
The bond is unsecured, meaning it relies on Sajida Foundation’s financial strength and reputation rather than specific assets.
DBH Finance PLC will serve as the trustee, while BRAC EPL Investments Limited will act as the arranger.
The bond will be listed on the Alternative Trading Board, providing liquidity and offering investors an opportunity to participate in the pioneering social investment.
