The capital market of Bangladesh witnessed a significant addition as the second subordinated bond issued by Brac Bank PLC officially commenced trading on the stock exchange. On Tuesday, 12 May 2026, the financial instrument was formally listed on the Alternative Trading Board (ATB) platform of the Dhaka Stock Exchange (DSE). This listing marks a crucial step for the private sector lender in diversifying its capital base and providing a new avenue for institutional and high-net-worth investors within the fixed-income segment.
The bond has been assigned the trading code ‘BBL2NDSB’ and the scrip code ‘55008’. It began its market journey under the ‘P’ category, a designation typically reserved for debt instruments and units of mutual funds on the ATB. The inclusion of this bond on the electronic trading platform is intended to enhance liquidity for debt securities, which historically have been traded over-the-counter or held until maturity by primary investors.
Initial Market Performance and Trading Data
Upon its debut on Tuesday morning, the market saw an initial opening price of 1,000,561 Taka per unit. However, as the session progressed, the price experienced a slight adjustment. By mid-day, specifically 12:00 PM, trading records indicated that 10 units of the bond had changed hands through a total of three transactions.
During these early trades, the price per unit decreased by 561 Taka, eventually settling at the face value of 1,000,000 Taka. This price movement reflects the initial discovery phase of the bond on the Alternative Trading Board. Analysts note that for large-denomination debt instruments, trading volume is often lower than equity shares due to the high entry barrier and the specialised nature of the investor base.
Technical Specifications and Bond Structure
The issuer, Brac Bank PLC, structured this financial instrument with a total issue size of 700 crore Taka. The bond is characterised by several specific financial attributes:
Nature: It is a non-convertible, fully redeemable, unsecured, and subordinated debt instrument.
Interest Structure: It features a floating rate with a coupon-bearing mechanism.
Coupon Rate: The current annual coupon rate has been established at 12.59%.
Payment Cycle: Investors are entitled to receive coupon payments on a semi-annual basis (every six months).
Tenure: The bond was originally issued on 11 March 2024. As of its listing date, it has a remaining maturity period of 4 years and 10 months.
The “subordinated” status of the bond implies that in the event of the issuer’s liquidation, the claims of these bondholders would rank below those of senior creditors and depositors, but above the bank’s common shareholders. This structure is commonly utilised by banks to strengthen their Tier-II capital in accordance with Basel III regulatory requirements.
Investment Thresholds and Redemption Schedule
To maintain the institutional profile of the instrument, the minimum investment amount and the face value of each unit have been set at 1,000,000 Taka. This high threshold ensures that the bond is primarily accessible to institutional investors, corporate bodies, and affluent individual investors.
The redemption process is scheduled to occur on an annual basis rather than as a single “bullet” payment at the end of the term. The retirement of the principal amount will commence at the conclusion of the third year from the date of issuance. Specifically, the annual redemption payments are scheduled to begin on 11 March of each subsequent year until the full amount is settled.
Regulatory Framework for Trading
The Dhaka Stock Exchange has implemented a specific circuit breaker regime for the initial trading days of this bond to manage potential price volatility.
First Two Days: A special circuit breaker is in effect. On the inaugural day, a 4% circuit breaker was applied to the current value (determined by a minimum annual discount rate of 10%). This same 4% limit remains applicable on the second day based on the reference price.
Third Day: Trading will be suspended to allow for market stabilisation.
Fourth Day Onwards: The bond will transition to the standard 5% circuit breaker applicable to the ATB platform.
These measures are designed to ensure an orderly market for the newly listed debt security while protecting investors from extreme price fluctuations during the initial listing phase.