BRAC Bank: Housing Bond
IFC will subscribe to a locally issued, privately placed bond of up to five years from BRAC Bank to scale the Bank’s housing finance programme. The transaction provides stable, local-currency funding to expand access to mortgages for lower- and middle-income households, deepen Bangladesh’s domestic capital markets, and demonstrate a replicable model for affordable housing finance at scale.
Five-Axis Transformation
Data
Portfolio analytics to refine affordability thresholds, measure borrower repayment capacity, and monitor portfolio performance and inclusion outcomes.
Capacity Building / Technical Assistance
Support for product design, underwriting, collections, and customer-centric processes—embedding responsible lending, gender-responsive outreach, and clear disclosures.
Technology / Systems
Enhancements to loan origination and servicing (e-KYC, digitised workflows, scorecards, early-warning dashboards) to lower delivery costs and strengthen risk control.
Finance
Long-term, local-currency funding to on-lend as affordable mortgages; improved asset-liability matching; potential to crowd-in domestic investors through future placements.
Policy / Market Development
Capital-markets demonstration that widens feasible funding options for mortgages and supports the ecosystem for affordable housing finance.
Strategic Impact & Value Proposition
Expanded Access to Home Ownership
More first-time and underserved borrowers—particularly lower- and middle-income households—gain sustainable mortgage options.
Reduced Funding and Interest-Rate Risk
Local-currency, longer-tenor funding stabilises pricing and improves balance-sheet resilience.
Operational Efficiency & Consumer Protection
Digitised origination and strengthened credit governance improve turnaround times, transparency, and borrower outcomes.
Catalytic Market Signal
A scalable model for banks and investors, supporting deeper local capital markets and long-term housing sector growth.
Inclusive Growth
Housing construction and formal home finance spur jobs and MSME activity across the supply chain, reinforcing broader economic resilience