The Rise of Thematic Bonds, Bangladesh’s First Social Bond Issuance-An Internship Study at BRAC EPL Investment Limited

Abstract

The internship report titled ‘The Rise of Thematic Bonds: Bangladesh’s First Social Bond Issuance -An Internship Study at BRAC EPL Investment Limited’ is a partial fulfillment of the study program of the Bachelor of Business Administration (BBA) program. The report includes practical learning experiences from a three-month-long internship in the Investment Banking Department of BRAC EPL Investment Limited, with an analytical study of the first Social Bond in Bangladesh, offering a glimpse into the sustainable finance market in Bangladesh and the Investment Banking operations at BRAC EPL Investment Limited. The report represents an overview of BRAC EPL Investment Limited, including its organizational structure, industry position, Business operations, financial performance, and the functions of the Investment Banking Department. It also highlights the practical duties during the internship, such as working on Management Information System (MIS) databases, reviewing financial information, practicing financial modeling, supporting the bond team with documentation procedures, and other aspects of investment banking operations. These activities offered first-hand exposure to the roles of corporate finance and debt capital market services in practice, including operational, analytical, and regulatory elements. Besides that, it focuses on the development of thematic bonds in Bangladesh by examining a detailed case study of the country's first Social Bond issue. The report outlines the history of thematic financing, the features of Social Bonds, the regulatory framework for their issuance, and the transaction process adopted by the lead arranger. The planning, documentation, compliance, coordination of stakeholders, and implementation of a groundbreaking debt capital market transaction are highlighted Thematic bonds are a promising instrument to channel funds into socially beneficial projects, and to diversify the investments offered to domestic financial markets. The report highlights areas for improvement, including regulatory support, ESG reporting, investor awareness, market infrastructure, and ongoing engagement among issuers, regulators, and investment banks. The findings demonstrate the relevance of investment banks in structuring innovative financial instruments, fulfilling regulatory requirements, and linking the issuer to the investor. BRAC EPL Investment Limited has played a key role in developing innovative capital market solutions by participating in the first-ever issuance of the Social Bond in Bangladesh. Overall, this report showcases how practical internship experience can enhance academic education and give a first-hand glimpse into the economic landscape of financial markets, transaction execution, and sustainable finance. It also which highlights the growing importance of thematic bonds, a new financing mechanism that can support the long-term economic, social, and capital market development of Bangladesh.