The government is set to raise Tk 25 billion through the issuance of its seventh Sukuk bond in early December 2025 to finance rural infrastructure projects in Bangladesh's southern districts.
The decision was made at the first meeting of the Shariah Advisory Committee of the central bank, held at Bangladesh Bank (BB) headquarters in Dhaka on Monday, with BB Deputy Governor Dr Md Kabir Ahmed in the chair.
The move aims to boost economic activity, improve connectivity, and promote Shariah-compliant investment opportunities in the country's financial market.
Officials said the funds would support the Important Rural Infrastructure Development Project of Noakhali, Feni, and Lakshmipur (IRIDPNFL), covering roads, markets, and tourism facilities across 20 upazilas.
The project is expected to enhance livelihoods, cut transport costs, and strengthen rural economies in the region.
"We've decided to issue the Islamic bonds under the Ijarah financing mode with a tenure of seven years," a committee member told The Financial Express on Tuesday.
"Interested individuals as well as institutions will be eligible to invest in the Shariah-compliant bonds," he added.
The project is expected to stimulate local economies, create jobs, improve rural living standards, and reduce transport costs and travel time.
It has been named the "IRIDPNFL Socio-Economic Development Sukuk" to reflect the goals of the Islamic bonds, they noted.
They also said the government has already raised Tk 240 billion through six previous Sukuk issuances for various infrastructure and development projects across the country.
Sukuk is an Islamic financial certificate similar to a treasury bond, structured to generate returns in compliance with Islamic finance principles.
A senior executive of a leading Shariah-based Islamic bank urged the authorities to fix the profit rate for the upcoming Sukuk considering the yields on Bangladesh Government Treasury Bonds (BGTBs).
"The profit rate for the upcoming Sukuk bonds should be aligned with the previous, sixth issuance to sustain investor interest," the banker told the FE.
He noted that the profit, or rent, for the sixth Sukuk bond was 10.50 per cent for the same tenure.
"We expect that individuals and institutions alike will be encouraged to invest more in Shariah-compliant instruments," he added.
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