Date set for reissuance auction of 15-year Treasury Bond

The Bangladesh Bank has announced the reissuance auction of a 15-year Bangladesh government Treasury Bond, scheduled for Tuesday.

A media release issued by the Department of Communication and Publications (DCP), the reissuance auction will offer Tk 20.0 billion in nominal value of the 15-year Treasury Bond.

This bond, first issued on March 27, 2024 with a coupon rate of 12.15 per cent, carries an International Securities Identification Number (ISIN) of BD0939371151. It is set to mature on March 27, 2039.

The press release highlighted that the auction will be price-based one, meaning bidders must submit their desired purchase price and quantity of the bond.

The auction is open to all primary dealers of government securities, including banks and financial institutions, which have been appointed to participate in this process.

Other banks and financial institutions can also submit bids through primary dealers on behalf of their individual or institutional investor clients.

Participants are required to submit their bids electronically through the MI Module at the Bangladesh Bank between 10:00 am and 12:30 pm on the day of the auction.

In special circumstances, manual bids may be submitted in sealed covers, subject to approval from the relevant department.

The central bank has already issued detailed instructions regarding participation to all primary dealers, banks, and financial institutions through official correspondence.

The reissuance of the Treasury Bond provides an opportunity for banks, financial institutions and investors to engage with long-term government securities, contributing to the country's financial market stability.