Bangladesh Bank Signs Agreement to Issue BDT 80 Billion Sukuk for Safe Water Supply

Bangladesh Bank (BB) and the Finance Ministry of Bangladesh have signed a Memorandum of Understanding (MoU) on the 22nd of December 2020 to raise BDT 80 billion worth of Sukuk for the implementation of a safe water supply project, according to local media reports.

The Sukuk, which is the first of its kind in Bangladesh, will be issued as per the ‘Bangladesh Government Investment Sukuk Guidelines, 2020’ on the 30th of December 2020, according to the MoU. The Finance Ministry is the originator of the Sukuk, and BB, which is the country’s central bank, will act as a special purpose vehicle for the issuance of the Sukuk.

According to local media reports, the Sukuk issuance will comprise of two tranches. BB will initially issue BDT 40 billion at the end of...