Bangladesh Bank has declared that it will shortly issue Tk 3,000 crore in Islamic bonds, or Sukuk, to the national market. In March, this Sukuk will be issued in support of a social project.

This information was released by the central bank in a press release on Thursday, January 23.

According to the release, a social development project will be the basis for the issuance of this Sukuk. The project will improve the socioeconomic conditions of the project area and the rural road communication system, boost agricultural output, streamline and lower the cost of the transportation system for agricultural and non-agricultural goods, and guarantee both immediate and long-term job opportunities.

It stated that Bangladesh Bank has revised the Sukuk allocation rate to 70% in order to entice both domestic and foreign individual investors to invest in Sukuk.

It also says that, under specific restrictions, all scheduled banks, financial institutions, and insurance providers will be able to take part in the Sukuk purchase auction. However, the remaining Sukuk will be distributed proportionately if the necessary subscription is not received in the designated category. Sukuk can be purchased by individual investors who live in Bangladesh permanently using their personal bank accounts.

According to the central bank, foreign investors will be able to purchase Sukuk using their Taka or foreign currency accounts at any bank that operates in Bangladesh. The profit, sale proceeds, and actual foreign currency received at maturity will all be paid out if Sukuk is invested in foreign currency.