The government has introduced Bangladesh’s first-ever short-term sovereign Sukuk, offering investors a Shariah-compliant government security with a minimum investment of Tk10,000.
Applications for the 273-day Bangladesh Government Investment Sukuk (BGIS) open on Sunday from 10am to 3pm.
Through the issuance, the government aims to raise Tk5,500 crore from the market.
According to a Bangladesh Bank notification, the Sukuk will offer an annual profit rate of 9.36%.
Structured as an Ijara Sukuk, investors will receive the principal and accumulated profit in a lump sum at maturity.
The instrument is open to individual investors, non-resident Bangladeshis (NRBs) and institutional investors, with the low entry threshold aimed at encouraging participation from small savers.
How to apply
Investors can apply through their bank or financial institution accounts.
The auction and allocation process will be conducted through Bangladesh Bank’s Shariah Securities Module (SSM).
First-time investors must obtain a Sukuk Investor (SI) ID through their respective banks before applying. Existing investors with an SI ID from previous Sukuk issuances will not need a new registration.
Like other government securities, the Sukuk will be eligible for repurchase (repo) facilities, improving liquidity for investors.
Bangladesh Bank officials said the short-term Sukuk would provide a new avenue for safe, Shariah-compliant investment while helping the government mobilise short-term funding.
What is Sukuk?
Sukuk is an Islamic financial instrument considered the Shariah-compliant alternative to interest-bearing bonds.
Unlike conventional bonds, Sukuk represents ownership in an underlying asset or project, with returns generated from rental income or profits rather than interest.
The Arabic term “Sukuk” refers to certificates representing ownership rights over tangible assets.
Islamic banking structures used globally include Mudarabah (profit-sharing), Musharakah (partnership), Murabaha (cost-plus financing), Istisna’a (manufacturing contracts), Qard Hasan (benevolent loans), Salam (advance purchase) and Ijara (leasing).
Govt raises Tk42,400 crore through Sukuk in six years
Bangladesh first introduced sovereign Sukuk in 2020 to finance development projects through Shariah-compliant instruments.
The inaugural Sukuk worth Tk8,000 crore financed the Safe Water Supply Project. The Finance Division had initially identified 68 projects eligible for Sukuk financing.
Since then, multiple Sukuk issuances have supported infrastructure and development projects.
According to Bangladesh Bank data, the government raised a total of Tk42,400 crore through Sukuk by June 2026.
Of this, Tk32,400 crore came through public auctions and Tk10,000 crore through private placements.
Global Sukuk market expands
Malaysia remains the world’s largest Sukuk market, followed by Bahrain, Indonesia, Pakistan, Qatar, Saudi Arabia, Singapore and the United States.
Over the past decade, Sukuk has expanded beyond Muslim-majority countries into a globally recognised Islamic capital market instrument.
The global Sukuk market now exceeds US$1 trillion, with about $200 billion in new issuances annually, reflecting rising demand for Shariah-compliant financing.
Bd-pratidin English/ ANI
