Agreement signed to issue shariah-based bond 'Sukuk'

An agreement was signed today between the Finance Division and the Bangladesh Bank at the Finance Division conference room to issue Islamic bond ‘Sukuk’.

The Sukuk bond will be issued as per the “Bangladesh Government Investment Sukuk Guidelines, 2020.”

According to the section 4 of that Guidelines, the Bangladesh Bank will act as the Special Purpose Vehicle (SPV) while the Finance Division will act as the trustee, said a Finance Ministry press release, reports BSS.

The Finance Ministry issued the guidelines on 8 October through a gazette notification.

According to the agreement, the SPV under the Bangladesh Bank will issue the Sukuk Bond by 30 December.

The release said the Finance Division has undertaken the initiative to issue this Sukuk Bond in this month of victory marking the birth centenary celebration of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.

The shariah-based bond Sukuk as a safe investment instrument of Islamic banking system aims to create investment opportunities, to use the liquidity of that sector as a source of financing for implementing development projects, reducing risk through expanding government loan portfolio, and thus saving cost.