Sukuk, a sharia-compliant bond-like instruments used in Islamic finance, would be issued in the country by December 30 this year.
The Finance Division and the Bangladesh Bank on Tuesday signed an agreement in this regard during a ceremony at the Finance Division conference room, reports BSS citing a press release.
The Sukuk bond will be issued as per the “Bangladesh Government Investment Sukuk Guidelines, 2020.”
According to section 4 of the guidelines, the Bangladesh Bank will act as the Special Purpose Vehicle (SPV) while the Finance Division will act as the trustee.
According to the agreement, the Bangladesh Bank will issue the Sukuk bond by December 30 as the SPV.
The finance ministry issued the guidelines on October 8 through a gazette notification.
The press release said the Finance Division has undertaken the initiative to issue this Sukuk bond in the 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 the 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.
