Pubali Bank PLC has approved a plan to raise $100 million through issuance of a five-year green bond, in a significant step in its push toward sustainable financing and support for environmentally responsible projects.
The decision was made at a meeting of the bank's board of directors at its Gulshan corporate branch in Dhaka on Wednesday, according to a disclosure filed with the stock exchange on Thursday.
Proceeds from the bond will finance projects aligned with environmentally sustainable and climate-friendly initiatives.
Officials said the move underscores the bank's growing focus on sustainable finance and its commitment to promoting green investment in line with global standards.
According to the disclosure, the proposed bond will follow the International Capital Market Association's Green Bond Principles, a widely recognised framework that ensures transparency and integrity in the green bond market.
The issuance will also comply with guidelines set by the International Finance Corporation and Bangladesh's Sustainable Finance Policy framework.
Green bonds are primarily used to fund projects delivering environmental benefits, including renewable energy, energy efficiency, pollution prevention, sustainable water management, and climate-resilient infrastructure.
Market analysts said the proposed bond could help strengthen the bank's funding base while facilitating investment in environmentally sustainable sectors, which are drawing increasing attention from financial institutions and regulators.
The bond issuance remains subject to necessary approvals from relevant regulatory authorities and full compliance with applicable regulations. Upon successful completion, the initiative is expected to bolster Bangladesh's emerging green financing ecosystem and contribute to sustainable economic development.
Following the announcement, Pubali Bank's share rose 0.53 per cent to Tk 37.80 on the Dhaka Stock Exchange (DSE) on Thursday.
The green bond plan comes on the heels of a strong financial performance for the bank. The bank recorded over 12 per cent year-on-year profit growth to Tk 7.80 billion in 2024, the highest in its history, driven by strong treasury returns and increased lending rates.
Based on the profit growth, Pubali Bank paid a 25 per cent dividend for 2024 (12.5 per cent cash and 12.5 per cent stock).
Currently, Pubali Bank is the largest private commercial bank in Bangladesh, operating 517 branches, 266 sub-branches and 32 Islamic Banking Windows. It also has the country's largest real-time centralised online banking network, according to its website.
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