The Rajshahi Division Important Upazila & Union Road Widening & Strengthening Project (RDIRWSP) is a major infrastructure initiative led by the Local Government Engineering Department (LGED) across 65 Upazilas in 8 districts of Rajshahi Division. The project involves:
- Widening and strengthening of 783.88 km of Upazila roads and 44.06 km of Union roads
- Construction of 65 km of RCC roads
- Development of bridge and culvert infrastructure, including new construction, widening, and rehabilitation of 1309.05 meters of bridges and 982.58 meters of culverts
- Enhancement of 1368.75 meters of existing bridges
- Additional works such as drainage, slope protection, traffic signs, and intersection improvements
To finance this, Bangladesh Bank will issue the 6th Bangladesh Government Investment Sukuk (BGIS) worth BDT 2,000 crore on 19 May 2025, acting as the Special Purpose Vehicle (SPV) under the Sukuk guidelines, based on an MoU between the Finance Division and Bangladesh Bank.
Features of the Issue:
|
SPV, Issuer and Lessor |
Islamic Securities Section, Debt Management Department, Bangladesh Bank. |
|
Originator, Assignor and Lessee |
Finance Division, Ministry of Finance, on behalf of the Government of the People’s Republic of Bangladesh. |
|
Issue Amount |
BDT 2,000.00 (two thousand) crore. |
|
Tenure of Sukuk |
07 (seven) years. |
|
Use of Proceeds |
The proceeds of the issue of the Sukuk will be used to construct & develop assets of ‘RDIRWSP Socio Economic Development Sukuk’. |
|
Denomination |
Minimum BDT 10,000.00 (ten thousand) and maximum integral multiples of BDT 10,000.00 (ten thousand). |
|
Auction Date |
18 May, 2025 10:00 AM to 19 May, 2025 12:30 PM |
|
Issue Date |
20 May, 2025 |
|
Maturity Date |
20 May, 2032 |
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Principal Underlying Contracts |
Istisna’a and Ijarah. |
|
Rental Rate |
10.50% per annum assuming total rent is BDT 1470 crore in 07 Years. |
|
Rent Distribution Interval |
Half Yearly. |
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Eligible Investors |
All Scheduled Banks, Finance Companies, Insurance Companies, Provident Funds, Deposit Insurance Funds, any resident and non-resident individuals etc. will be eligible to participate in the auction. However, this Sukuk will be allotted among the investors as per relevant circular(s) of Bangladesh Bank |
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Tradability |
Considering that the Sukuk Assets are under construction and that Sukuk holders will hold a significant portion of beneficial ownership of those assets, the Sukuk will be tradable at a negotiated price after the development and delivery of 50% of the Sukuk Assets which will be notified by the Bangladesh Bank. Prior to this, the Sukuk can be transferred at face value. As of February 2025, 3.50% of the Sukuk Assets have been developed. |
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Tax Applicability |
As per the Income Tax Act, 2023, and any other applicable law. |
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Security |
Guarantee declaration given by the Local Government and Engineering Department and the Treasury and Debt Management Wing of Ministry of Finance, as well as backed by the full faith and credit of the government. |
To know more, please call +8801700707606 (Md Mahmudur Rahman, First Assistant Vice President, Wealth Management) or +8801712329983 (Enam Ahmed Hasan, First Assistant Vice President, Wealth Management)