Utilization of Sukuk bond funds emphasised

Speakers at a seminar on Tuesday stressed the proper utilization of funds mobilized through issuing Sukuk bonds to make it popular among institutional and general investors.

Timely distribution of dividend and scope of changing the ownership should also be ensured in this regard, they said, taking part in a discussion titled “Sukuk: A New Investment Avenue for Institutional Investors in Bangladesh”.

The seminar was held at the Bangladesh Institute of Capital Market (BICM) in the capital.

“The tax-waiver facility for the bond is under consideration. Introduction of separate rules for Sukuk bonds is also important to make such debt instruments popular,” Md. Firoz Ahmed, deputy secretary at the finance ministry, told the seminar.

Md. Gholam Mostafa, a deputy general manager (DGM) at Investment Corporation of Bangladesh (ICB), said the corporate bonds have no sovereign guarantee. “But, the ICB is working as the trustee considering its prospect.”

The speakers focused on the need for investors’ literacy regarding the bond.

SM Kalbin Salema, a lecturer at BICM, presented a research paper at the seminar.

The research paper was completed based on a survey conducted in 26 institutes. The paper highlighted the institutions’ interest in Sukuk bonds having five-year tenure.

The institutional investors have also shown interest in infrastructure and green bonds, according to the research paper. “The securities regulator has also played a vital role to make such bond popular,” it added

Masuma Sultana, deputy general manager (DGM) at Bangladesh Bank, also spoke at the seminar, moderated by the BICM’s director Wajid Hasan Shah.

Courtesy of: The Financial Express