Bangladesh issues sovereign sukuk worth $463.24m

A total of 39 financial institutions participated in the auction.

Bangladesh issued its first-ever sovereign sukuk worth $463.24m, with a total of 39 finance institutions participating in the auction.

Central bank Bangladesh Bank acted as the Special Purpose Vehicle and trustee, whilst the government was the originator of the first-ever Sukuk deal.

The investors will receive a profit of 4.69% on their aggregate investment, as fixed by the central bank.

Funds raised will be used for the completion of the government’s project for a safe water supply for the whole country to be implemented by the Department of Public Health Engineering. The project is expected to be completed by 30 June 2025.