The state-run Investment Corporation of Bangladesh (ICB) will issue 'ICB 1st Mudaraba Sukuk' worth Tk 10 billion in a bid to support the country's capital market.
The corporation's board of directors has taken the decision of issuing sukuk subject to approval of the securities regulator and others concerned, according to a disclosure posted on the website of Dhaka Stock Exchange (DSE).
"The fund will be invested in various shariah based securities or instruments of capital market and money market," the disclosure said.
The state-run corporation said at least 70 per cent of the fund will be invested in the capital market and the rest will be invested in the money market.
The tenure of the ICB's non-listed sukuk will be 10 years and the face value will be Tk 1000 per unit.
The prospective eligible investors or sukuk holders include all residual and non-residual Bangladeshis, local and foreign companies, government institutions and corporations, and other social institutions such as clubs and associations.
Besides, institutional investors such as banks, insurers and financial institutions will also be eligible investors.
The ICB's disclosure said a minimum 75 per cent of net profit of the sukuk will be distributed at the end of the year of launching the bond.
To redeem the principal amount of sukuk, 20 per cent of the issued capital will be paid at the end of each 6th, 7th, 8th and 9th year in terms of face value or market value whichever is lower during 6th to 9th year.
".. the residuals shall be paid at the market price at the end of 10th year to the sukuk holders. The minimum return will be market yields of DSE."
The state-run ICB, presently an 'A' category company, was listed on the stock exchange in 1977.
The company's sponsor-directors hold 69.81 per cent, the government 27 per cent, institutes 1.67 per cent and the general investors 1.52 per cent as on November 30, 2021.
The company's share price closed at Tk 118 on Monday with a rise of 0.94 per cent on the premier bourse DSE.
