Government to Roll Out 7-Year Shariah Bonds

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Government to Roll Out 7-Year Shariah Bonds

In order to fund the construction of upazila and union-level roads in Rajshahi division, the government has chosen to sell Islamic bonds (Sukuk) totaling Tk 2,000 crore. This seven-year Sharia-based bond will yield a 10.50 percent annual return for investors. This information was made public by Bangladesh Bank’s Communication and Publication Department (DCP) in a notification on Tuesday, April 29.

According to the notification, on May 19, Bangladesh Bank would list the Sukuk bond on the Islamic Securities Secondary Market. The central bank will manage the bond’s issuing procedure and transactions.

On May 20, 2032, the seven-year bond will mature. The lease-based Sukuk bond will yield a yearly profit of 10.50 percent and be repaid every six months. Tk 2,000 crore has been chosen as the bond’s face value.

Participants in the bond’s auction include insurance firms, provident funds, deposit insurance funds, domestic and overseas investors, and any bank or financial institution in Bangladesh that has an Al-Wadiyyah or current account with Bangladesh Bank.

Bangladesh Bank or other approved financial institutions can handle bond transfers and transactions.

Tenders for this bond are open to institutions interested in investing starting at 10 a.m. on May 18 and ending at 12:30 p.m. on May 19. Following that, on May 20, the profit rate will be decided, and trading in Bangladesh Bank securities will begin on that day.

 

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