BB approves five-year extension for Tk 8,000cr Sukuk
Bangladesh Bank (BB) has extended the tenure of the 1st Bangladesh Government Investment Sukuk by an additional five years. This decision, designed to protect the interests of the Sukuk holders and ensure compliance with Shariah guidelines, pushes the maturity date of the instrument back to the end of 2030. The Sukuk was originally issued for a 5-year period, totaling Taka 8,000 crore, against the government project titled "Safe Water Supply Across the Country". Its initial maturity date was scheduled for December 29, 2025.
The extension was finalized following the recommendation of the Shariah Advisory Committee (SAC), which operates under the Debt Management Department. The Government’s Cash and Debt Management Committee (CDMC) also provided its approval for the measure. With the extension, the new maturity date for the investment Sukuk is December 29, 2030. Supporting documentation necessary for the extended term was approved during an SAC meeting held today at the headquarters of the Bangladesh Bank.
The instrument is based on the lease method. For the utilization of the leased Sukuk assets during the extended period, the Government or Originator has committed to pay investors a total of Taka 3,804.00 crore as rent. This rent will be distributed to investors semi-annually at a proportionate rate. Based on calculation, the annual return rate is 9.51%, which is currently calculated at 4.69%.
While the Sukuk’s term has been extended, investors are provided with clear options regarding their holdings. Sukuk investors may hold the discussed Sukuk for the extended five-year period. Any investor who does not wish to continue their investment may cash out on the original maturity date, December 29, 2025. Investors who opt for the cash-out must submit an application through their respective banks. The application should be directed to the Special Purpose Vehicle (SPV), specifically the Islamic Securities Section, which falls under the Debt Management Department. The circular noted that detailed procedures regarding the cash-out process will be conveyed to all relevant parties in due course.
