Bangladesh is preparing to issue its eighth government investment Sukuk worth Tk 5,900 crore to finance the construction and development of key bridges on rural roads. The initiative is part of the revised project titled “Construction of Important Bridges on Rural Roads (1st Revised),” according to an official statement.
The seven-year Islamic bond, named ‘CIBRR-1 Socio-Economic Development Sukuk,’ has already received approval for its prospectus and Shariah compliance declaration from the Shariah Advisory Committee under the Debt Management Department. This marks another step in the country’s efforts to expand Shariah-compliant investment instruments.
The Sukuk will be auctioned for the first time on May 13 using Bangladesh Bank’s in-house Shariah Securities Module (SSM) system. According to the prospectus, it will be issued through an auction-based lease structure with a total face value of Tk 5,900 crore and will mature on May 14, 2033.
Investors are expected to receive a total rental return of Tk 4,295.20 crore over the seven-year period, which translates into an annual return of 10.40 percent. These returns will be paid on a semi-annual basis.
Banks and financial institutions that maintain current or Al-Wadiah accounts with Bangladesh Bank will be eligible to participate directly in the auction. In addition, domestic and foreign individual investors, corporate bodies, investment companies, insurance firms, provident funds, and deposit insurance funds will be able to invest through eligible banks and financial institutions.
Interested investors can submit their bids online through the SSM system using their Sukuk Investor ID. Bids must be placed in multiples of Tk 10,000, and the bidding window will remain open from 10:00 AM to 3:00 PM on May 13.