The Bangladesh Securities and Exchange Commission (BSEC) published draft amendments to the Bangladesh Securities and Exchange Commission (Debt Securities) Rules, 2021 for public opinion, proposing a broadened sustainable bond framework and updated issuance conditions for sustainable instruments offered via private offer or public issue. The draft adds and revises key definitions, including “gender bond”, “orange bond”, updated “green bond”, “green projects”, “social bond”, “social projects”, “sustainable bond” and “sustainability bond”, and replaces the schedule on eligible project categories with expanded eligible green and social project lists and stated exclusions. It would introduce detailed requirements on use of proceeds and Information Memorandum disclosures, including recommended disclosure on financing versus refinancing and a look-back period capped at two years for refinanced green or social projects, project selection and evaluation processes (including external review), proceeds management through an escrow or specified bank account with prior BSEC consent required for changes in utilisation, and investor reporting with impact indicators and external reviewer confirmation. Consent fees would be set at 0.10% of total face value for securities issued under the rules and 0.03% for sustainable bonds, with a split-fee approach for partially sustainable issuances. Comments, advice or objections must be submitted within two weeks from publication of the notice.

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