The state is presenting an opportunity for investors adhering to Islamic financial principles to earn a guaranteed 10.5% yield annually, while simultaneously contributing to vital infrastructure development in the Rajshahi division. The minimum amount that can be invested in this asset-anchored Islamic financial tool, RDIRWSP Socio-Economic Development Sukuk, the 6th government Sukuk in Bangladesh, is Tk10,000. The purchase window for this Sukuk is set for 18-19 May, and potential investors are invited to apply.
Potential investors can acquire Sukuk either through bank transactions or via merchant banks. The state has an expectation to amass Tk2,000 crore via this 7-year Sukuk, the funds from which will be dedicated to expanding and strengthening vital road networks across prominent upazilas and unions in the Rajshahi region.
Sukuk represents a form of Islamic financial tool that facilitates Halal investing possibilities. It deviates from the conventional loan bonds that yield interest. Instead, Sukuk yields returns via leasing income generated from different government developmental projects. This arrangement is in strict adherence to the Islamic financial tenets as affirmed by the Shariah advisory panel.
This particular instrument operates on the principles of Islamic financing (Ijarah). It confidently assures ethical returns without the introduction of interest. As the 6th Bangladesh Government Sukuk, investors can look forward to earning a 10.5% annual lease rate, which is scheduled to be paid twice annually, providing a solid, government-sponsored income flow.
The issuance of this Sukuk is overseen by the Ministry of Finance, and the operations are monitored by the Bangladesh Bank. This setup ensures a strong, stable investment option for the prospective investors. Additionally, the advantage of tax deductions under the government’s securities investment threshold only sweetens the pot.
This RDIRWSP Socio-Economic Development Sukuk isn’t merely a financial instrument for profit-making purposes alone. Its underlying principle is to foster progress, the allocation of funds from this instrument goes directly into improving road networks, extending reachability, and thereby inducing economic expansion in the Rajshahi region.
This Sukuk’s investment also aligns with the government’s larger objective of poverty reduction. Since the release of their first Sukuk in 2020, the government has managed to efficiently raise funds to help facilitate important projects including safe water provision, rural bridge building, and primary school development.
This recent Sukuk issuance continues that admirable theme, presenting investors with a lucrative opportunity to accrue earnings, while also making a long-term positive impact on society. Sukuk’s primary investors have traditionally been institutional players such as Islamic lenders, insurers, and funds.
However, as awareness has started to spread, individual investors are becoming increasingly interested in contributing to Sukuk. Blending strong returns in accordance with Shariah principles and a sense of social responsibility, this Suku is inevitably becoming an attractive investment option.