Dhaka
Sukuk, the Islamic Shariah-compliant bond, will be issued on Monday, marking the history in the country’s financial market. The Bangladesh Government Islamic Investment Sukuk worth Tk 40 billion will be issued, officials of Bangladesh, who are familiar with the development, told the FE on Wednesday. The denomination of each Sukuk is Tk 10,000. Any Muslim and institution can purchase it. Individuals can purchase through the banking channel. They will need to open separate accounts with the banks. An individual may buy a minimum of one such bond and there is no upper limit. The government will raise Tk 80 billion through the Sukuk for the implementation of a safe water supply project across the country beginning from January next. Islamic bond is different from that of the traditional bond. There is a need for a project to raise funds from the Islamic people. There are usually three parties involved in an Islamic Sukuk-originator, Special Purpose Vehicle and investors. The government is the originator of the Sukuk. Bangladesh Bank will act as a Special Purpose Vehicle to administer it. It will also act as the trusty to resolve any potential conflict between the investors and government. Investors will receive a profit of 4.69 per cent on their aggregate investment in Islamic bond.
—The Financial Express
