Bangladesh to Raise BDT 150 Billion Through Sukuk to Fund Three Local Projects

The Government of Bangladesh has announced its intention to issue Sukuk worth BDT 150 billion to fund three ongoing development projects, according to government officials.

Why it Matters?

Bangladesh relies on revenue collection, treasury bills and bonds, bank loans, and savings certificates to cover budget spending. As revenue collection has fallen short of projections and project costs are rising, government officials are now looking for long-term financing of key projects through Sukuk. The new Sukuk financing is anticipated to finance nearly half of three projects that are estimated to cost BDT 345 billion. The projects, that are expected to be completed by 2023, have been initially chosen by the Ministry of Finance and a review o...