Bangladesh Government to Raise USD 574 Million Through Istisna Sukuk for Rural Infrastructure Project

The government of Bangladesh has announced its plans to raise BDT 50 billion (USD 574 million) through the issuance of its third set of Islamic bonds, in the form of Bangladesh Government Investment Sukuk (BGIS), known as Istisna Sukuk, in an auction on the 19th of April 2022, for the implementation of a rural infrastructure development project.

Why it Matters?

Both the project duration and Sukuk tenure have been set for five years and the necessary preparations for the issuance have been completed by the country’s central bank, Bangladesh Bank (BB), which will act as a special-purpose vehicle for the offering. A fresh Sukuk-allotment quota has already been set by the regulator with priority given to Shariah-based financial institutions in orde...