The government is issuing a short-term Bangladesh Government Investment Sukuk (Islamic bond) worth Tk 3,000 crore to finance rural infrastructure development projects.
According to a press release issued by Bangladesh Bank, the auction for the Sukuk will take place on December 1.
The 182-day Sukuk will offer investors a profit rate of 7.50 percent per annum upon maturity. Based on the terms, investors will receive a total profit of Tk 112.19 crore for the 182-day period, which will be paid lump-sum at maturity. The maturity date for the Sukuk is set for June 2, 2027.
The Sukuk—structured under the "Sukuk Al-Ijara" leasing method against the 'Priority-based Important Rural Infrastructure Development Project'—has a face value of Tk 3,000 crore.
The auction will be conducted via Bangladesh Bank's proprietary Shariah Securities Module (SSM) software. The prospectus and Shariah declaration for the issuance have already been approved by the Shariah Advisory Committee under the central bank's Debt Management Department.
Direct Participants: All scheduled banks and financial institutions maintaining current or Al-Wadiah current accounts with Bangladesh Bank can participate directly in the auction.
Indirect Participants: Local and foreign individual investors, corporate entities, investment companies, insurance companies, provident funds, and deposit insurance funds are also eligible to invest. However, they must route their participation through banks or financial institutions that hold current or Al-Wadiah current accounts with Bangladesh Bank.
Investors can apply to purchase the Sukuk in a minimum amount of Tk 10,000 and its multiples. Online bids must be submitted through the Shariah Securities Module (SSM) against respective Sukuk Investor (SI) IDs on the auction day between 10:00 AM and 1:00 PM.
New investors are required to complete the process of opening an SI ID by contacting their respective banks no later than November 29. Successful bidders will be notified of their Sukuk allocations via their respective SI IDs by 3:00 PM on December 1.
Bangladesh Bank stated that all necessary preparations for the auction have been finalized following the approval of the Sukuk prospectus and Shariah declaration.