The BNP government is issuing a short-term Bangladesh Government Investment Sukuk (Islamic bond) worth Tk 3,000 crore to finance rural infrastructure development projects.
The Sukuk will have a tenure of 182 days, and investors will receive a profit at an annual rate of 7.50% upon maturity. The auction is scheduled for 1 December.
According to a press release from Bangladesh Bank, the investment Sukuk will be issued under the Ijarah method (Sukuk Al-Ijarah) against the “Priority-based Important Rural Infrastructure Development Project.” The face value of the Sukuk has been fixed at Tk 3,000 crore, with the maturity date set for 2 June 2027.
Under the stated terms, investors will be paid a total profit of Tk 112.19 crore for the 182-day period. This amount will be disbursed in a single lump sum at maturity. The annual profit rate has been set at 7.50%.
The auction will be conducted on 1 December through Bangladesh Bank’s own software, the Shariah Securities Module (SSM). The prospectus and Shariah declaration prepared for this purpose have already received approval from the Shariah Advisory Committee formed under the Debt Management Department of Bangladesh Bank.
How investors can participate
All banks and finance companies that maintain a current or Al-Wadiah current account with Bangladesh Bank can participate directly in the auction. In addition, domestic and foreign individual investors, corporate entities, investment companies, insurance companies, provident funds, and the Deposit Insurance Fund are also eligible to invest.
However, these institutions and individuals must participate in the auction through a bank or financial institution that has a current or Al-Wadiah current account with Bangladesh Bank.
Investors can apply to purchase Sukuk for a minimum of Tk 10,000 and in multiples thereof. On the scheduled day, bids must be submitted online against their respective Sukuk Investor (SI) IDs through the Shariah Securities Module (SSM) between 10:00 a.m. and 1:00 p.m.
New investors must complete the process of opening an SI ID by contacting the relevant bank by 29 November. Successful bidders will be informed of the allocated Sukuk amount against their respective SI IDs at 3:00 p.m. on 1 December.
Bangladesh Bank stated that the necessary preparations for holding the auction have been completed through the approval of the Sukuk prospectus and Shariah declaration.