The government has raised Tk 3,000 crore by issuing a socio-economic Sukuk to fund construction of bridges on rural roads.
The Bangladesh Bank conducted an auction for the 5th Bangladesh Government Investment Sukuk on Wednesday at its head office.
The auction saw overwhelming participation, with Shariah-based banks, financial institutions, Islamic branches/windows of conventional banks, individual investors and provident funds submitting bids totalling Tk 10,925.46 crore 鈥� 3.64 times the offered amount.
As a result, the Sukuk was allocated proportionally among investors to ensure fair distribution.
The seven-year lease-based Sukuk carries an annual rental yield of 9.25 per cent.
This marks the government鈥檚 fifth Sukuk issuance, with previous issues raising a total of Tk 19,000 crore.
The Sukuk framework allows Shariah-based banks and financial institutions to channel their liquidity into development projects while providing an alternative investment option.
It also expands access to Shariah-compliant financial instruments for retail investors.
Banks and financial institutions can use their acquired Sukuk to meet their Statutory Liquidity Reserve (SLR) requirements.
Additionally, Shariah-based banks and Islamic banking windows of conventional banks can use the Sukuk as collateral to access liquidity support from Bangladesh Bank under the Islamic Banks Liquidity Facility (IBLF).
Although the Sukuk was initially allocated to primary auction participants, all scheduled banks, financial institutions, insurance companies, individual investors and other entities can purchase it on the secondary market.
