Bangladesh Bank to float 7-year government sukuk in February
The seventh Bangladesh Government Investment Sukuk is set to be launched in the first week of February, offering investors a Shariah-compliant, government-backed investment option.
Issued as an ijarah-based (rent-based) instrument, the sukuk provides a risk-free investment avenue with full protection of principal, being backed by the government. Investment in the sukuk also qualifies for an individual tax rebate under the prevailing government securities investment guidelines.
The Bangladesh government, through Bangladesh Bank, will issue the sukuk amounting to Tk2,500 crore to finance the Important Rural Infrastructure Development Project in Noakhali, Feni and Lakshmipur (IRIDPNFL). The prospectus and Shariah pronouncement have been approved by the Shariah Advisory Committee of Bangladesh Bank.
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The seventh government sukuk will have a seven-year tenure and offer an annual return of 9.60 per cent, payable semi-annually. The subscription period is scheduled for 8–9 February 2026.
The investment will be transferable, allowing investors to sell their holdings before maturity if required. The minimum subscription amount is Tk10,000, with further investments allowed in multiples of Tk10,000.
Both individual and institutional investors, resident or non-resident, are eligible to invest in the sukuk. General investors may subscribe using their bank accounts or via merchant banks.
The previous six government sukuks, structured under ijarah and istisna'a, have supported a range of social welfare and infrastructure development projects, including safe water supply, primary school development and road construction.
Commenting on the issuance, Rubayet-E-Ferdous, Chief Executive Officer of Shanta Equity, told The Business Standard that the government sukuk offers both financial security and national development impact.
'The government sukuk directly contributes to infrastructure development while providing risk-free, Shariah-compliant returns for investors. This is a good opportunity for both individual and institutional investors, given the stable returns and the chance to contribute to the country's welfare,' he said.
