The Bangladesh Bank (BB) is preparing to issue its 7th government investment Sukuk, valued at Tk2,500 crore, in December 2025. The proceeds will be used to finance the Important Rural Infrastructure Development Project in Noakhali, Feni, and Lakshmipur (IRIDPNFL) districts. This initiative aims to support the development of rural infrastructure, including roads, markets, and tourism facilities.
The approval for the Sukuk issuance was made during the first meeting of the Shariah Advisory Committee at the Bangladesh Bank headquarters. The committee, chaired by Deputy Governor Md Kabir Ahmed, unanimously agreed on the seven-year Sukuk to be issued under the Ijarah method, a Shariah-compliant lease financing mechanism. This method aligns with Islamic investment principles and avoids interest-based financing.
Sukuk, a Shariah-compliant financial instrument, differs from conventional bonds. Rather than earning returns from interest, Sukuk holders receive profits derived from real assets and revenue-sharing. The funds raised from this Sukuk will be directed towards enhancing infrastructure in 20 upazilas across the three districts, focusing on road construction, slope protection, and the development of local markets and tourism infrastructure. The project, known as the IRIDPNFL Socio-Economic Development Sukuk, is expected to boost the local economy, create jobs, and improve rural living standards while reducing travel time and transportation costs.
Currently, Islamic banks, commercial banks with Islamic windows, and Islamic financial institutions are eligible to invest in this Sukuk, making it a significant tool for channeling Shariah-compliant funds into national development projects. This issuance will mark Bangladesh Bank’s seventh Sukuk offering, following six previous Sukuk issuances, which have collectively raised Tk24,000 crore.
Istequemal Hussain, Director of the Debt Management Department at Bangladesh Bank, highlighted the role of Sukuk as a transformative financial tool for Bangladesh. “By aligning public financing with ethical and faith-based investment principles, Sukuk not only meets developmental needs but also strengthens the foundation of Islamic finance in the country,” Hussain said.
In May 2025, Bangladesh Bank issued its sixth Sukuk to fund the Rajshahi Division Important Upazila and Union Road Widening and Strengthening Project (RDIRWSP). This Sukuk, worth Tk2,000 crore, was also structured using the Istisna and Ijarah methods and was focused on improving rural roads and modernizing communication networks across 65 upazilas in the Rajshahi Division.
The first government Sukuk was issued by Bangladesh Bank in December 2020, marking a pivotal moment for the country’s Islamic finance sector. This initial Sukuk, valued at Tk8,000 crore, was dedicated to the Safe Water Supply Project, which aimed at building clean water infrastructure in rural areas.
Before the introduction of Sukuk, Shariah-compliant banks faced challenges in investing in government Treasury bills and bonds, as these are based on interest. The introduction of the Bangladesh Government Investment Sukuk (BGIS) in 2020 addressed this gap, providing a much-needed avenue for Islamic financial institutions to participate in government-backed development projects in a manner consistent with their ethical investment principles.