The Bangladesh Securities and Exchange Commission (BSEC) has approved the first ever green bond in the country in favour of Sajida Foundation.
The value of the bond is Tk100 crore for a tenure of two years, which is unsecured, non-convertible, and fully redeemable.
Issuing this bond, Sajida Foundation will enhance its micro credit operations with new and ongoing projects.
It will also use the funds for ensuring environmental development.
The securities regulator approved the bond in a meeting presided over by BSEC Chairman, Professor Shibli Rubayat-Ul-Islam, on Wednesday.
A green bond is a fixed-income instrument specifically earmarked to raise money for climate and environmental projects.
These bonds are typically asset-linked and backed by the issuing entity's balance sheet, so they usually carry the same credit rating as their issuer's other debt obligations.
In a press release, BSEC said the bond will be issued to institutional investors, insurance companies, corporate entities and prosperous individuals through private placement. The face value of each unit of the bond is Tk10 lakh.
The trustee of the bond is Sena Kalyan Insurance Company Limited and the mandated lead arranger is Standard Chartered Bank.