The Bangladesh Bank has announced plans to issue the fifth government investment Sukuk, or Islamic bond, worth Tk 3,000 crore to finance a social development project scheduled for March. According to a press release, this Sukuk will fund the second phase of the "Rural Roads and Key Bridge Construction Project." To encourage investment, the central bank has allocated 70% of the Sukuk for Shariah-based banks, finance companies, and insurance firms; 10% for Islamic branches and windows of conventional banks; and 20% for individual investors, provident funds, and deposit insurance.

This Sukuk aims to enhance rural road connectivity, improve socioeconomic conditions, increase agricultural productivity, and facilitate the transportation of goods while reducing costs. It is also expected to create employment opportunities in both the short and long term. Scheduled banks, financial institutions, and insurance companies can participate in the auction under specific conditions. Any unsubscribed Sukuk will be distributed proportionally among other categories.

Resident individuals can invest through their local bank accounts, while expatriate investors can participate using foreign or local currency accounts in Bangladeshi banks. Profits, sale proceeds, and principal amounts will be repaid in the currency of investment if made in foreign currency. This initiative follows the government’s decision during the 2019-20 fiscal year to introduce Shariah-based Sukuk to utilize Islamic banks' liquidity for financing budget deficits and as an alternative for investors avoiding interest-bearing securities like Treasury bills and bonds.