Written by The Banking Post
The Bangladesh Bank is set to issue its 7th government investment Sukuk, worth Tk 2,500 crore, in December, to finance the Important Rural Infrastructure Development Project in Noakhali, Feni, and Lakshmipur districts.
Chaired by Deputy Governor Md Kabir Ahmed, the Shariah Advisory Committee of the central bank held its first meeting on Monday and unanimously approved the seven-year Sukuk, to be issued under the Ijarah method, a Shariah-compliant lease-based financing model.
Sukuk is an Islamic investment instrument where profits are derived from real project assets and revenue sharing rather than interest. Islamic banks, commercial banks with Islamic windows, and Islamic financial institutions will be eligible to invest.
The funds will be used for road construction and widening, slope protection, market and tourism infrastructure, and other facilities across 20 upazilas, aiming to boost local economies, create jobs, and improve rural living standards. The issuance has been titled the IRIDPNFL Socio-Economic Development Sukuk.
With this, the Bangladesh Bank will have issued seven Sukuks, totalling Tk 26,500 crore, since the first was launched in December 2020 to fund the Safe Water Supply Project.
Istequemal Hussain, Director of the Debt Management Department, said the Sukuk has become a transformative tool for financing development while strengthening the country’s Islamic finance ecosystem.
Earlier in May 2025, the central bank issued the sixth Sukuk, worth Tk 2,000 crore, to support rural road and communication network upgrades across Rajshahi Division.
The introduction of government Sukuk in 2020 opened up investment opportunities for Shariah-compliant banks, which previously could not invest in interest-based Treasury instruments, allowing Islamic finance to play a stronger role in national development.
