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The government is going to raise Tk 30 billion by issuing the fifth Sukuk bond in the third week of March 2025 as part of its effort to implement a development project smoothly.
The decision was made at the first meeting of the central bank's Shariah Advisory Committee at the banking regulator's headquarters in Dhaka on Thursday, with Bangladesh Bank (BB) Deputy Governor Dr Md Kabir Ahmed in the chair.
"We have also decided to issue the Shariah-compliant bond through both Istisna'a and Ijarah financing structures," a member of the committee told The Financial Express after the meeting.
He also said it would be a social-impact bond for the construction of important bridges on rural roads (CIBRR-2), with a tenure of seven years.
The Local Government Engineering Department (LGED) will implement the project to boost agricultural production and improve socio-economic conditions at the grassroots level, according to central bank officials.
Under the project, 82 bridges would be constructed in 58 upazilas across the country, enhancing connectivity in rural areas. Additionally, a river training scheme would be implemented, officials added.
Meanwhile, the central bank has already started work to issue another social-impact Sukuk bond worth Tk 20 billion by June 2025 to implement another development project smoothly.
"We are now scrutinising projects to be financed through the sixth Sukuk bond," a senior central bank official said without elaborating.
The government has so far raised Tk 190 billion through Sukuk bonds for the implementation of different projects across the country.
Sukuk is an Islamic financial certificate, similar to a treasury bond and structured to generate returns in compliance with Islamic finance principles.