Dhaka, Bangladesh (BBN) - Bangladesh government is going to raise BDT 20 billion by issuing the sixth Sukuk bond in the second-week of May 2025, as part of its efforts to implement a development project in the Rajshahi division.
The decision was made at a first meeting of the Shariah Advisory Committee of the central bank at its headquarters in Dhaka on Wednesday with Bangladesh Bank (BB) Deputy Governor Dr. Md. Kabir Ahmed in the chair.
“We’ve also decided to issue the Islamic bonds using both Istisna’a and Ijarah financing modes with tenure of seven years,” a member of the committee told BBN in Dhaka.
He also said interested individuals as well as institutions will be eligible to invest in the Shariah-compliant bonds.
The Local Government Engineering Department (LGED) will implement the Rajshahi Division Important Upazila & Union Road Widening & Strengthening Project (RDIRWSP) using the funds, aiming to create job opportunities by improving road connectivity in the rural areas of the northwestern region of Bangladesh.
The project will help establish civic amenities across 65 upazilas in eight districts under the Rajshahi division by enhancing rural road connectivity, according to the BB officials.
They also said the government had already raised BDT 220 billion through issuing five-type of Sukuk bonds for the implementation of different projects across the country.
Sukuk is an Islamic financial certificate, similar to a treasury bond and structured to generate returns in compliance with Islamic finance principles.
BBN/SSR/AD