BRAC Bank has set a new record in structured finance by raising Tk 500 crore through non-convertible, cumulative and fully redeemable preference shares for a power generation project of United Mymensingh Power Limited, a concern of United Group.

The financing arrangement marks the largest such preference share transaction in the country’s history, according to the bank.

A signing ceremony for the deal was held on May 13 at Crowne Plaza Dhaka Airport Hotel, where BRAC Bank acted as the lead arranger. City Bank and Uttara Bank also participated in the transaction.

The five-year financing structure has been designed to balance the long-term interests of both the issuer and investors. The funds will be used for new development projects and business expansion initiatives of United Group.

United Group Chairman Moinuddin Hasan Rashid said collaboration with local banks and innovative financial solutions are essential to sustain industrial growth and address global economic challenges.

BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said the transaction reflects the growing maturity of Bangladesh’s capital market and the bank’s capability to structure large and complex financing solutions.

Senior officials, including Uttara Bank Managing Director and CEO Md. Abu Hossain, were also present at the event.