BB to issue Tk2,500cr 7th investment sukuk for rural development in Dec
The Bangladesh Bank will issue its 7th investment Sukuk, worth Tk2,500 crore, in December to finance the Important Rural Infrastructure Development Project in the Noakhali, Feni, and Lakshmipur (IRIDPNFL) districts.
Chaired by Deputy Governor Md Kabir Ahmed, the Shariah Advisory Committee held its first meeting at the central bank headquarters on Monday and unanimously approved the seven-year Sukuk issuance through the Ijarah method (a Shariah-compliant lease financing mechanism), according to a press release.
Sukuk is a Shariah-compliant investment instrument, where profits are derived from actual project assets and revenue sharing, not through interest.
Currently, Islamic banks, commercial banks with Islamic windows, and Islamic financial institutions can invest in this Sukuk. This allows Shariah-based banks to channel their funds effectively into government development projects.
The funds raised from the 7th investment Sukuk will support road construction and widening, slope protection, and the development of markets, hat areas, and tourism infrastructure across 20 upazilas. The project aims to boost the local economy, create employment, improve rural living standards, and reduce transportation costs and travel time. Accordingly, the Sukuk has been named the IRIDPNFL Socio-Economic Development Sukuk.
This issuance will mark Bangladesh Bank’s 7th government Sukuk, following six previous issuances totalling Tk24,000 crore.
Istequemal Hussain, director of the Debt Management Department at the Bangladesh Bank, said the Sukuk has emerged as a transformative financial tool in Bangladesh, advancing socio-economic development while fostering a stable and inclusive Islamic financial ecosystem. “By aligning public financing with ethical and faith-based investment principles, Sukuk not only meet developmental needs but also solidifies the foundation of Islamic finance in the country,” he added.
Earlier, in May 2025, the sixth Sukuk was issued in connection with the “Rajshahi Division Important Upazila and Union Road Widening and Strengthening Project (RDIRWSP)”.
With the approval of the Shariah Advisory Committee of Bangladesh Bank, this seven-year Sukuk worth Tk2,000 crore was issued using the Istisna and Ijarah methods. It was a social development-oriented Sukuk, aimed at improving rural roads, modernising communication networks, and generating employment across 65 upazilas in eight districts of Rajshahi.
First Sukuk was issued in December 2020
The first government investment Sukuk in Bangladesh was issued in December 2020, marking a new chapter in the country’s Islamic finance sector. This five-year Sukuk worth Tk8,000 crore was issued under the Istisna and Ijarah methods for the Safe Water Supply Project.
The first Sukuk project focused on the construction of infrastructure for supplying clean water in rural areas, including pipeline installation and development of water distribution networks.
Previously, Shariah-compliant banks had limited opportunities to invest in government Treasury bills and bonds because these instruments are interest-based. As a result, large amounts of funds in these banks often remained idle. In this context, the government launched the Shariah-compliant “Bangladesh Government Investment Sukuk” in 2020 to enable participation by Islamic banks and financial institutions.
