Government to Issue BDT 25 Billion Islamic Bond for Rural Infrastructure Development in Southeastern Bangladesh

Staff Reporter | PNN

The government plans to issue a BDT 25 billion “Sukuk” or Islamic bond to develop rural infrastructure in Noakhali, Feni, and Lakshmipur districts. The final decision on this Sukuk issue was made at the latest meeting of the Shariah Advisory Committee of Bangladesh Bank.

Bangladesh Bank announced on Tuesday that during a meeting chaired by Deputy Governor and Committee Chairman Dr. Md. Kabir Ahmed, approval was given for the seven-year Sukuk issue under the name “IRIDPNFL Socio-Economic Development Sukuk.” The funds will be used for road construction, widening, rehabilitation, embankment protection, and development of markets and tourist areas across 20 upazilas in the three districts.

Officials and economic analysts expect the project will boost both agricultural and non-agricultural economic activity, improve the living standards of rural residents, create new employment opportunities, and significantly reduce transportation costs and time.

Bangladesh Bank plans to issue this Sukuk by December 2025. Previously, through special purpose vehicles, the bank issued six Sukuk totaling BDT 240 billion. This will be the government’s seventh Sukuk issue. Economists believe this initiative will promote integrated development and socio-economic progress in the important southeastern region of the country.