The government plans to float Tk 3,000 crore worth of Sukuk, a Shariah-compliant bond, in March to fund the construction of bridges that will connect rural roads.

The objective is to boost agricultural production and improve socio-economic conditions at the grassroots level.

This will be the fifth Sukuk bond issued by the government since December 2020, when it first introduced the Sukuk—an Islamic financial certificate similar to a treasury bond and structured to generate returns in compliance with Islamic finance principles—in Bangladesh.

The Bangladesh Bank shared this information in a press release, a day after it increased subscription opportunities for individuals alongside banks, finance companies, and insurance companies.

The BB stated that 70 percent of the Sukuk would be allocated to Shariah-based banks, finance companies, and insurance companies.

An additional 10 percent will go to the Islamic branches and windows of conventional banks, while the remaining 20 percent will be reserved for individual investors, provident funds, and deposit insurance.

This initiative follows previous Sukuk issuances, which were also dedicated to social development projects. In December 2020, the government raised Tk 8,000 crore through Sukuk to implement a safe water supply project.