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BRAC Bank and BRAC EPL Investments have successfully closed the first-ever Zero-Coupon Bond issued by the Centre for Development Innovation and Practices (CDIP), marking a significant milestone in Bangladesh’s debt market with a face value of BDT 1.71 billion (Tk 171 crore).
The bond was issued as part of CDIP’s strategic initiative to diversify its funding sources and reduce dependence on traditional sources of financing, according to a press release.
By tapping into the capital market, CDIP aims to optimise its cost of funds and enhance its financial flexibility to better serve its mission of financial inclusion and poverty alleviation.
The successful subscription reflects growing investor appetite for well-structured non-bank instruments and underscores market confidence in the credit profile of established microfinance institutions.
It also supports the development of a deeper, more diversified bond market—an essential pillar for the long-term maturity of Bangladesh’s financial system.
Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank, stated, “We are pleased to support CDIP in its inaugural bond issuance. This transaction demonstrates our commitment to delivering innovative structured finance solutions that enable institutions to strengthen their capital base and access sustainable funding.”
Mifta Naim Huda, Executive Director of CDIP, commented, “Issuing our first Zero-Coupon Bond is a transformative step for CDIP. The support from BRAC Bank and BRAC EPL Investments has been instrumental in helping us reach new investors.”
CDIP is a Bangladesh-based non-profit organisation implementing innovative development programmes aimed at improving the lives of disadvantaged communities. Since launching its microcredit operations, the organisation has reached more than 330,000 members and their families nationwide.
BRAC EPL Investments Limited, one of Bangladesh’s leading investment banks, provides comprehensive services in issue management, corporate advisory, and portfolio management.
A zero-coupon bond is a fixed-income instrument issued at a discount, offering no periodic interest, with investors receiving the full-face value at maturity.
The successful closure of CDIP’s inaugural Zero Coupon Bond highlights the combined capabilities of BRAC Bank and BRAC EPL in structuring innovative financing solutions that attract a broad investor base, mobilise significant capital for development initiatives, and offer a secure, tax-efficient investment avenue within Bangladesh’s expanding debt market.