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The Bangladesh Securities and Exchange Commission (BSEC) has sought technical assistance from the International Monetary Fund (IMF) to accelerate the development of the country’s sustainable bond market and attract long-term private investment for climate-resilient projects.

The issue was discussed at a meeting between senior BSEC officials and a six-member delegation from the IMF’s Climate Policy Diagnostic Technical Assistance Mission at the regulator’s headquarters in Dhaka on Tuesday.

The discussions focused on strengthening Bangladesh’s policy framework, institutional capacity and market infrastructure to build a credible sustainable finance ecosystem capable of attracting both local and foreign investors.

BSEC Commissioner Tanwir Habib Rahman represented the regulator, while the IMF delegation was led by Suphachol Suphachalasai.

The meeting reviewed the development of green bonds, sustainability bonds and other thematic debt instruments, which are widely used globally to finance renewable energy, climate adaptation, sustainable infrastructure and environmentally responsible projects.

“A stronger policy environment could improve investor confidence, facilitate future issuances of sustainable debt instruments, and enable Bangladesh’s capital market to play a greater role in financing the country’s climate and development priorities,” a BSEC official said.

The two sides also discussed aligning Bangladesh’s regulatory framework with international standards, including verification requirements, impact reporting, external review mechanisms and the readiness of banks, financial institutions and corporate issuers to participate in the sustainable bond market.

They also exchanged views on expanding the investor base and assessing demand for future bond issuances.

According to the BSEC, the IMF’s technical assistance is expected to help the regulator develop a comprehensive sustainable finance framework aligned with global best practices.

Market experts say a stronger sustainable bond market could reduce Bangladesh’s heavy reliance on bank financing by creating an alternative source of long-term capital.

Akramul Alam, head of research at Royal Capital, said a robust regulatory framework, credible disclosure and verification standards, and a broader institutional investor base would be essential to attracting both domestic and foreign investment.

He added that a mature sustainable bond market would diversify investment opportunities for banks, insurance companies, pension funds, mutual funds and foreign institutional investors, while supporting Bangladesh’s long-term climate and sustainable development goals.