In a move to finance the second phase of a crucial rural bridge construction project, Bangladesh Bank has decided to issue an Islamic bond, or ‘Sukuk’, worth Tk 3,000 crore.
The decision was finalised during the first meeting of the Shariah Advisory Committee held on Thursday.
The seven-year Sukuk will be issued under the Islamic banking principles of Istisna and Ijara. Given its focus on social development, it has been named the 'Social Impact Sukuk'.
The initiative, spearheaded by Bangladesh Bank's Deputy Governor Md Kabir Ahmed, aims to finance the construction of 82 bridges across 58 upazilas in the eight divisions of the country.
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Under the jurisdiction of the Local Government Engineering Department (LGED), the project encompasses the construction of 17,697 metres of bridges, 38,800 metres of connecting roads and 4,230 metres of river training works.
Officials at the central bank have expressed optimism that the issuance of this Sukuk will facilitate the smooth implementation of the project.
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The enhanced rural road network is expected to improve socio-economic conditions in the project areas, boost agricultural production, streamline the transportation of agricultural and non-agricultural goods, reduce costs, and create both short- and long-term employment opportunities.