Brac Bank Limited has decided to issue bonds worth Tk600 crore for providing affordable finance to lower and middle-income groups of the country.
On Sunday, the private sector lender disclosed the decision on the websites of both stock exchanges.
As per the disclosure, the bond will be non-convertible, private placed, redeemable, unsecured, and fixed coupon-bearing.
The bank is now talking with foreign investors to invest in the bond and it hopes a large part will be subscribed by foreign investors, said officials at the lender.
The tenure of the bond will be five years and the interest rate has been fixed at 5.5%, the officials told TBS wishing anonymity.
An official of the bank said there is a massive demand for loans among lower and middle-income groups of people willing to buy small houses or flats, but very often the lower-income people do not get loans.
"As a result, the bank has decided to lend them to fulfill their dream," he added.
Brac Bank was listed on stock exchanges in 2007.
In the first half of 2021, it posted a profit of Tk215.45 crore, which was Tk95.06 crore in the same time of the previous year.
Earlier in 2020, it posted a profit of Tk441.33 crore and paid a 10% cash and 5% stock dividend to the shareholders.