Water supply project: Second auction for Tk4,000 crore sukuk bond on 9 June

The Islamic sukuk bond’s second round of auction will be held on 9 June to raise another Tk4,000 crore to implement a safe water supply project across the country.

The auction will be held at the Islamic Securities Section of the Debt Management Department of the Bangladesh Bank.

Bids can be submitted in the manner described in the auction notice between 10am and 12pm. The sukuk bond will expire on 29 December 2025.

Investors of sukuk will be paid a return of 4.69% per annum on a half-yearly basis, according to a press release of the central bank issued on Tuesday.

Any domestic or foreign investor or organisation in the auction will be able to submit bids through any bank or financial institution located in Bangladesh, which has a current account with the Bangladesh Bank, it read.

Banks and financial institutions will be able to submit bids for the purchase of sukuk for themselves or for any client in multiples of Tk10,000.

Earlier, in the first phase, the government raised Tk4,000 crore for the safe water project last December through the issuance of sukuk bond. Then, many banks and individuals placed bids worth Tk15,153 crore against the target of Tk4,000 crore.

The estimated cost of the safe water project is Tk8,851 crore.