Bangladesh Bank is going to issue a five-year term Islamic financial certificate, better known as Sukuk bond, in the second week of June.
The bond is intended to raise fund worth Tk 40 billion for a project to supply safe water across the country.A Sukuk is a shariah-compliant bond-like instruments used in Islamic finance involving direct asset ownership interest, while bonds are indirect interest-bearing debt obligations.
In a statement, the central bank informed that the auction for the bond will be held at Islamic Securities section of the central bank head office in capital’s Motijheel on June 9.
The government aims to raise fund for the project for safe water across the country utilizing the five-year tool. Investors will get profit bi-annually at the rate of 4.69 percent.
The Sukuk will mature in 5 years and investors will get 4.69 percent profits on their investment on a semi-annual basis. Any individual or organization can participate in the bond through financial institutions affiliated with the central bank. In any case, if the bid of any investor category is less than the stipulated amount, the Sukuk amount will be allocated among other investors based on the decision of Sukuk Auction Committee, according to a central bank official.
Bank and non-bank financial institutions can participate in the auction for own purpose or for the clients in any amount multiplied with Tk 10000.
The successful participants of the auction will be notified through e-mails on the same day while the transactions will be completed through the Al Wahiah or current account tagged with Bangladesh Bank on the following day. Bids quoting desired investment amount should be submitted in prescribed form through e-mail to [email protected] from 10am to 12pm on June 9.Earlier on December 28 last year, Bangladesh Bank issued the first ever Sukuk of Tk 40 billion.