Bangladesh is poised to take a significant step toward inclusive and sustainable economic growth by exploring the launch of Orange Bond and Orange Sukuk, aimed at empowering women, protecting the environment, creating employment, supporting MSMEs, and transforming rural communities—all while building Shariah-compliant capital.
The initiative aligns with Bangladesh’s Islamic finance heritage and presents a unique opportunity to integrate social and environmental goals with innovative financial instruments.
The combined use of ‘Orange Bonds’ and ‘Orange Sukuk’ is expected to strengthen Bangladesh’s financial landscape and support inclusive and sustainable development.
This was highlighted at a media briefing titled ‘Bangladesh Orange Bonds: Mobilizing Global Capital for Inclusive Local Growth’ held on Thursday at a hotel in Kawran Bazar, Dhaka.
The event was organized by Impact Investment Exchange (IIX), a pioneer and key player in global impact investing.
Sixth sovereign Sukuk bond’s auction held at central bank
Professor Durreen Shahnaz, Founder and Chief Executive Officer of IIX, delivered the welcome address, emphasizing the importance of justice, social inclusion, and climate action in sustainable economic progress. “The role of the Orange Bond is crucial,” she said. “Its primary goal is to foster equality, inclusion, and climate resilience within Bangladesh’s economy.”
Debashis Roy, Advisory and Partnerships Director at IIX Bangladesh, and Bashar Rahman, Analyst at IIX Bangladesh, also shared insights in the event.
In her welcome remarks, Shahnaz stated that true economic progress is not sustainable unless it is anchored in justice, social inclusion, and climate action. She emphasized that this is exactly where ‘Orange Capital’ can play a vital role. “The Orange Bond and Orange Sukuk are designed to place equality, inclusion, and climate resilience at the core of Bangladesh’s economic future,” she said.
To advance this mission, IIX is partnering with key players across sectors, such as the Infrastructure Development Company Limited (IDCOL).
“Preparations are underway to launch Bangladesh’s first Orange Bond series, aiming for a US$1 billion issuance in the near future,” she added.
The initiative is designed to not only raise capital but also support key sectors such as garments, agriculture, healthcare, financial services, and MSMEs. It aims to empower women, youths, and marginalized communities, helping them adapt to and mitigate the impacts of climate change. IDCOL’s involvement as a vital partner underscores the program’s commitment to public welfare and scaling impact.
IIX is also building private-sector partnerships as it has already signed an MoU with BRAC-EPL Investments Ltd., an LOI with PRAN-RFL Group, among others to explore the issuance of Orange Bonds and Orange Sukuk.
Bangladesh Bank to issue Tk 3,000 crore ‘Sukuk’ bond
At the briefing, IIX also shared its vision for developing Bangladesh’s Orange Capital Market and its potential positive impact both locally and globally. The organization highlighted that Orange Bonds are the world’s first cross-sector financial instruments, designed to channel investments into key sectors, in line with the United Nations Sustainable Development Goals (SDGs).
The event underscored the critical role of MSMEs, including women-led MSMEs, which together contribute approximately 27% to Bangladesh’s GDP. Supporting these enterprises is key to the country’s inclusive economic transformation, promoting women’s economic empowerment and gender equality in capital formation.
With Bangladesh on track to achieve middle-income country status by 2026, the briefing also acknowledged future challenges, such as limited capital formation, lack of demand-driven credit, and declining foreign aid, which could impact sustained growth.
The briefing also cited Indonesia as a successful example, where state-owned financial institution PT Permodalan Nasional Madani (PNM) has already launched ‘Orange Bonds and Orange Sukuk’ worth IDR 16 trillion (approximately US $980 million), dedicated to financing women-led MSMEs.