The introduction of Bangladesh's first International Capital Market Association (ICMA)-aligned social bond won this year’s award for Sustainable investment initiative of the year (fixed income). The bond was structured and arranged by the investment bank BRAC EPL Investments and created a roadmap for future sustainable bond issuance in Bangladesh.

Under its framework, verified by S&P Global, proceeds were directed towards financing small- and medium-sized enterprises (SMEs) and local businesses, linking the transaction to clearly defined social objectives. The proceeds of the bond will be distributed for initiatives towards achieving Sustainable Investment Goals (SDGs) 1, 2, 3, 5, 6, 8, 10 and 11.

The bond was the first sustainable debt instrument to receive regulatory approvals from both Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC).

The structure of the deal also broke new ground, as it was designed to qualify as Tier 2 regulatory capital while meeting international social bond standards.

BRAC EPL conducted investor education programmes to explain the bond's investment characteristics and the principles of sustainable finance, while setting a minimum investment size of BDT 1 million (around $8,000) to broaden participation.

Sustainable Investment Awards judges highlighted the initiative's combination of innovation and replicability, noting that it established a framework that could support the future growth of the country’s sustainable debt market.