Bangladesh Government to Raise BDT 80 Billion Through Five-Year Sukuk in December 2020

The Government of Bangladesh will raise BDT 80 billion through Sukuk in December 2020, according to the Bank and Financial Institutions Division under the country’s Ministry of Finance. This is the inaugural Sukuk issuance in the Government of Bangladesh’s history, which will be used to meet its widening budget deficit. According to local media reports, the five-year Sukuk issuance will comprise of two tranches, with the yield yet to be fixed, and will be open to Islamic banks to invest.

Meanwhile, sources from commercial banks in Bangladesh have stated that the issuance will be used to explore uninvested funds from Islamic banks. According to Bangladesh Bank (BB) statistics, Islamic banks in the country had the largest amount of...