DHAKA, Jan 23, 2025 (BSS) – Initiatives have been taken to issue the 5th Bangladesh Government Investment Sukuk against the project titled “Construction of Important Bridges on Rural Roads (Phase 2) (CIBRR-2).”

Like other Sukuk issued earlier, this Sukuk will also be issued against a social development project. 

There is a plan to issue Sukuk worth Taka 3,000 crore against the project in March, 2025. 

Through the project, the development of rural road communication system and socio-economic conditions of the project areas, boosting agricultural productivity, simplifying and reducing the cost of agricultural and non-agricultural goods transportation system, and ensuring employment opportunities in the short and long term would be ensured, said a Bangladesh Bank press release today.

In order to encourage domestic and foreign individual investors to invest in Sukuk, the Sukuk allocation rate has been re-determined to 70% in favor of Shariah-based banks/finance companies/insurance companies, 10% in favor of Islamic branches and windows of conventional banks, and 20% in favor of individual investors, provident funds, deposit insurance investors.

All conventional banks, financial institutions and insurance companies can participate in the auction subject to conditions. 

However, if the required subscription is not received in the three categories, the remaining Sukuk will be allocated among them on a proportionate rate.

The resident individual investors can invest in Sukuk through their own bank accounts. Non-resident individuals or institutional investors can invest in Sukuk through non-resident foreign currency accounts or non-resident taka accounts maintained in their name with any bank operating in Bangladesh.

The profits, sale proceeds and actual foreign currency received at maturity (after deducting all applicable fees and/or taxes) are repatriable.