BB to hold Sukuk auction tomorrow

The Bangladesh Bank will call an auction for Sukuk—an Islamic Shariah-compliant bond— tomorrow to raise Tk 4,000 crore.

This is the first such fund the government is going to issue to collect funds to implement development project across the country. The government will raise a total of Tk 8,000 crore through the Sukuk for the implementation of a safe water supply project.

The denomination of each Sukuk is Tk 10,000. Any corporate institutions and individuals will be allowed to invest in the bond. There will be no upper limit.

Investors will receive a profit of 4.69 percent on their aggregate investment in the Islamic bond.

The Bangladesh Government Islamic Investment Bond (BGIIB) profit-sharing ratio of the six-month is 3.69 percent, and the central bank has added 1 percentage point to settle on the rate for the Sukuk.  Profits will be paid to investors on a half-yearly basis.