The term of the first Bangladesh government investment Sukuk of Tk8,000 crore issued against the “Nationwide Safe Water Supply” project has been extended by another five years.
The current maturity of this Sukuk with a term of 5 years is scheduled for December 29, 2025.
According to the new decision, the next maturity date of the Sukuk will be December 29, 2030.
This information was given in a notification sent by Bangladesh Bank on Sunday (November 30).
It said that based on the recommendation of the Shariah Advisory Committee formed under the Debt Management Department of Bangladesh Bank and the approval of the government’s Cash and Debt Management Committee (CDMC), it has been decided to extend the term to protect the interests of the Sukuk holders and follow the Shariah principles.
To this end, all the necessary ancillary documents were approved at the Shariah Advisory Committee meeting held at the Bangladesh Bank head office on Sunday.
After the extension of the term, the government or the originator will pay a total of Tk3,804 crore as rent against the use of the leased Sukuk assets.
Although the annual rental rate is fixed at 9.51% based on the calculation, the current effective rate is 4.69%.
Investors will receive this rental on a pro-rata basis on a six-monthly basis.
Investors will be able to hold the Sukuk as before during the extended period.
However, if any investor does not want to continue the investment, they can apply to the Special Purpose Vehicle of Bangladesh Bank—Islamic Securities Section (Debt Management Department)—through their respective banks within the specified period and cash out the Sukuk on December 29, 2025.
Bangladesh Bank said that detailed instructions regarding the cashing out of the Sukuk will be communicated to the concerned parties later.
