Bangladesh Bank

Head Office Debt Management Department

(Islamic Securities Section)
Motijheel, Dhaka-1000
Bangladesh
Reference No: DMD/219(1)/2020-2104 Date: 23 December, 2020

Chief Executive Officers/Managing Directors

All Scheduled Banks and Financial Institutions in Bangladesh

Dear Sir,
Auction Notice for Bangladesh Government Investment Sukuk (Ijarah Sukuk)
The auction of Bangladesh Government Investment Sukuk (BGIS) having maturity period of 05 years will be
held on 28 December, 2020 (Monday). The auction will be conducted as per guidelines prescribed by notification
number 07.00.000.137.35.001.20.2 dated October 08, 2020 of the Finance Division, Ministry of Finance and
Prospectus issued through letter number DMD/219(1)/2020-2105, dated 23 December, 2020 by Islamic Securities
Section of Debt Management Department. The Sukuk shall be issued in face value. The main features of the Sukuk
and the auction procedure are as follows.
A. Notified Amount : BDT 4,000.00 (Four Thousand) crore (face value).
B. Minimum amount : BDT 10,000 or any amount of multiples of BDT 10,000 in face value.
of Bids
C. Auction Process : Sukuk shall be issued at par through a fixed profit based auction.
D. Profit or Rental : 4.69% (Fixed per annum).
rate
E. Eligibility : Any resident and non-resident individuals and institutions can purchase Sukuk through
Banks and Financial institutions.
F. Profit Distribution : Profit shall distribute on half-yearly basis. According to Finance Act-2020, (Under
Interval & Source Section 51 of Income Tax Ordinance, 1984) income tax will be deducted from rental
Tax profit as per Government applicable rate.
G. Transferability : Freely tradable and transferable.
H. Auction Procedure : Any banks and financial Institutions maintaining current account with Bangladesh Bank
and Acceptance of can submit bids in the auction. Other investors those are interested to invest in Sukuk
Bid shall submit bids through banks and financial institutions having current account with
Bangladesh Bank.
The Sukuk Auction Committee shall accept bids up to the notified amount. If bidding
amount surpasses the notified amount, the auction committee shall allocate the Sukuk
certificates on Pro-rata basis among the bidders.
I. Security : Backed by the full faith and credit of the government.

Bids quoting desired investment amount should be submitted in prescribed form (Annex-1) through e-mail
(To:masuma.sultana@bb.org.bd,CC:onom.fes@gmail.com) from 10.00 to 12.30 am on date of auction
(28 December, 2020). The result will be announced by 4.30 pm on same day. The bids submitted in the auction will
be considered as the letter of authorization of the participating institutions to debit their current accounts maintained
with Bangladesh Bank. The settlement of the transaction shall be carried out on the following business day of the
auctions (i.e. T+1). Therefore, concerned institutions are advised to submit bids through their responsible officials.

Yours faithfully,
Sd/
(Masuma Sultana)
Deputy General Manager
Phone: 02-55665001-6/22782
E-mail: masuma.sultana@bb.org.bd
 Annex-1

Bid Form for Bangladesh Government Investment Sukuk Auction

Head of Islamic Securities Section Date:

Debt Management Department,
Bangladesh Bank,
Head Office, Dhaka.

Dear Sir,
Bid for 05 Years Bangladesh Government Investment Sukuk (Ijarah Sukuk)

Pursuant to the Auction Notice no. DMD/219(1)/2020-2104 published by the Islamic Securities Section on
dated: 23 December, 2020 for the sale of the captioned Sukuk certificates, we hereby apply to purchase of the
same as per details given below: -

Bank/FI Name:

Islamic Window/Islamic
Branch (if applicable)

Client Name
(if applicable)

Link Investor Dealer Not Applicable

ID:

1. Amount Face Value (in figures) Tk.

(In words) Tk.

2. Profit/Rental Rate: 4.69%

On acceptance and settlement, please debit our Al-Wadiah/Current Account maintained with Bangladesh Bank
with the face value of the Bangladesh Government Investment Sukuk issued to us.

We are obliged to follow any decisions made by the Sukuk Auction Committee.

Yours faithfully,

Authorized Name & Signature

with Seal/Rubber Stamp
 Bangladesh Bank
Head Office Debt Management Department
(Islamic Securities Section)
Motijheel, Dhaka-1000
Bangladesh

Reference No: DMD/219(1)/2020-2105 Date: 23 December, 2020

Chief Executive Officers/Managing Directors

All Scheduled Banks and Financial Institutions in Bangladesh

Dear Sir,
Prospectus for Bangladesh Government Investment Sukuk (Ijarah Sukuk)

Please be informed that to promote the development of the financial sector, the Finance Division of
Ministry of Finance has taken initiatives to issue Ijarah Sukuk in the market. Islamic Securities Section, Debt
Management Department, Bangladesh Bank will act as Special Purpose Vehicle for issuing Ijarah Sukuk to
raise fund for developing the infrastructure of a project named Safe Water Supply to the Whole Country.
The Prospectus for Bangladesh Government Investment Sukuk (Ijarah Sukuk) has attached here for your
acknowledgement.

Yours faithfully,

Sd/

(Masuma Sultana)
Deputy General Manager
Phone: 02-55665001-6/22782
E-mail: masuma.sultana@bb.org.bd
 Prospectus

The Offer of Ijarah Sukuk

Safe Water Supply for the Whole Country

(A project for developing infrastructure to supply safe water to the whole country)

BDT 8000,00,00,000
In pursuant to a Memorandum of Understanding (MoU) signed between Finance Division, Ministry of
Finance and Bangladesh Bank for issuing Ijarah Sukuk to raise fund for developing the infrastructure of a
project named Safe Water Supply to the Whole Country as per Bangladesh Government Investment
Sukuk Guideline, 2020 (guideline no 07.00.000.137.35.001.20.2, dated 08 October 2020) manifested by
the Finance Division, Ministry of Finance; and
In accordance with the assignment letter and undertaking to repurchase the assigned asset for transferring
the ownership of usufruct and the lease agreement signed between the Finance Division, Ministry of
Finance, and Bangladesh Bank;

On request of the Finance Division, Ministry of Finance, the Special Purpose Vehicle (SPV) formed by
Bangladesh Bank will issue Ijarah Sukuk in the market to promote the development of the financial
sector.

About The Project:

In Bangladesh, there is a great concern over the high morbidity and mortality related to water-borne
diseases. Bangladesh (GoB) has installed more than 1.4 million hand pump tube wells in rural areas. The
introduction of drinking water through tube wells, some higher sanitation coverage and improved primary
healthcare have contributed to a significant drop in mortality from diarrheal diseases. At present,
Bangladesh achieved 88% safe water supply coverage. However, the situation is yet to be improved. The
Government has taken initiatives of a five years tenor project named “Safe Water Supply for the Whole
Country”, which will be implemented by the Department of Public Health Engineering (DPHE). The
project commenced on 01 January, 2020 and will be completed on 30 June, 2025. The overall cost for
completion of this project is estimated as BDT 8,851 (eighty thousand eight hundred fifty one) crore. This
project will improve public health and enhance the standard of living of the people of Bangladesh.

Purpose of the prospectus

This prospectus comprised of terms required for the issue of the Sukuk certificates described herein
pursuant to the BDT 8,000 (eight thousand) crore Sukuk certificate issuance programme under
Bangladesh Government Investment Sukuk Guidelines, 2020.
Originator:

The Finance Division, Ministry of Finance on behalf of the Government of the People’s Republic of
Bangladesh.

SPV and Issuing Authority:

A separate section named “Islamic Securities Section” has been formed in the Debt Management
Department (DMD) of Bangladesh Bank as following composition:

1. Deputy General manager, Debt Management Department, Bangladesh Bank- Head of Section
2. Joint Director, Debt Management Department, Bangladesh Bank- Member
3. Deputy Director, Debt Management Department, Bangladesh Bank- Member
4. Assistant Director, Debt Management Department, Bangladesh Bank- Member
5. Assistant Director, Debt Management Department, Bangladesh Bank- Member

This section will work as SPV for the issuance and management of this Sukuk. SPV will work separately
and independently as a front office and back office to issue Ijarah Sukuk certificate for raising funds from
the investors and managing the fund thereof.

Trustee:

A trust committee comprised of 6(six) members headed by Deputy Governor, Bangladesh Bank is formed
for ensuring the rights and benefits of Sukuk certificate holders and mitigating any kinds of dispute arise
during the Sukuk period. The ownership of usufruct of the underlying asset will be transferred to the trust
committee by the originator in due course. The composition of trust committee is as follows:

1. Deputy Governor, In charge of Debt Management Department - Chairman

2. Executive Director, In charge of Debt Management Department- Member
3. Executive Director, In charge of Banking Regulation and Policy Department- Member
4. Executive Director, In charge of Monetary Policy Department- Member
5. Executive Director, In charge of Law Department- Member
6. General Manager, In charge of Debt Management Department- Member
Overview of Shariah Committee:

The Shariah Advisory Committee formed by Bangladesh Bank has given their valuable decision (fatwa)
and suggestion on various issues of this Sukuk complying with Shariah Principles. The composition of
the Shariah Advisory Committee is as follows:

1. Executive Director, In charge of Debt Management Department Chairman

2. General manager, In charge of Debt Management Department Member
3. General manager, In charge of Banking Regulation and Policy Department Member
4. Md. Monzorul Haque, Deputy Secretary, Ministry of Finance Member
5. Professor Dr. Mohammad Gias Uddin Talukder, Chairman,
Shariah Supervisory Committee, Islami Bank Bangladesh Limited, and
Central Shariah Board for Islamic Banks of Bangladesh (CSBIB) Member
6. Mufti Shahed Rahmani, Shariah Adviser, Al-Arafah Islami Bank Limited Member
7. Moulana M. Shamaun Ali, Shariah Adviser, First Security Islami Bank Limited Member
8. Abul Quasem Md. Safiullah, Member Secretary
Shariah Supervisory Committee, EXIM Bank Member
9. Md. Farid Uddin, Member Secretary,
Shariah Supervisory Committee, Shahjalal Islami Bank Limited Member
10. Md. Abdullah Sharif, Secretary General,
Central Shariah Board for Islamic Banks of Bangladesh (CSBIB) Member
11. Deputy General Manager, Debt Management Department Member Secretary

Uses of Proceeds: Infrastructure development (such as building construction, machinery, equipment and
part purchase, arsenic iron removal plant, rain water harvesting unit, hydrological characterization, the
establishment of submersible pump, deep tube well, hand pump, multiple hand pump, solar panel, etc.)
for implementing the project “Safe Water Supply to the Whole Country.”
 Bangladesh Bank
Debt Management Department
Islamic Securities Section
(Special Purpose Vehicle)

Issuance of Sukuk Certificate for BDT 8000,00,00,000 due 2025

CONTRACTUAL TERMS

This document constitutes the Final Terms of the Sukuk Certificate described herein and must be read in
conjunction with Bangladesh Government Investment Sukuk Guidelines, 2020. Full information on the
issuer, the government, and the offer of the Sukuk certificate is available based on a combination of this
information:

1 SPV, Issuer, and Lessor : Debt Management Department, Bangladesh Bank

2 Obligor, Lessee, and Servicing Agent : Finance Division, Ministry of Finance on behalf of the
Government of the People’s Republic of Bangladesh
3 Aggregate Face Amount : BDT 8000,00,00,000 (Eight Thousand Crore)
4 Tenor of Sukuk : 5 (five) years
5. Number of Tranche and Issue Amount of : 2 (two) tranche;
Each Tranche BDT 4,000 (four thousand) Crore in each tranche
6. Auction Process : Fixed profit (yield) based auction
7. Specified Currency : Bangladeshi Taka
8. Issue Price : At Par BDT 100
9. Specified Denomination : Minimum BDT 10,000 (Ten Thousand) and
Maximum integral multiples of BDT 10,000.
10. Auction Date : a) 1st Tranche : 28 December, 2020
: b) 2nd Tranche : 28 June, 2021
11. Maturity Date 05 years from the issue date
12. Rental Rate : BGIIB rate as declared for the calendar year 2019 dated
12/05/2020 by the Bangladesh Bank + 1% which is
3.69%+1% = 4.69% (Fixed) per annum
13. Rent Distribution Interval : Half Yearly
14. Dissolution Basis (if needed) : Dissolution at par with accrued profit in case of early
redemption with the mutual consent of originator and
investors.
15. Redemption Basis at maturity : Redemption at agreed price
16. Call/Put Option
17. Day Count Convention
18. Eligibility for investment
19. Tradability
20. Tax Applicability
21. Statutory Liquidity
Applicability
22. Commence and Termination
23. Governing Guideline
24. Security
25. Litigation
: Not Applicable
: Actual/Actual
: Any resident and non-resident individuals and
institutions can purchase Sukuk through Banks and
Financial institutions.
: Tradable
: As per the Income Tax Ordinance, 1984
Ratio (SLR) : Sukuk held by Banks and Financial Institutions on their
own account will qualify as approved security for SLR
fulfillment.
: Each of Ijarah Sukuk Certificates will commence on the
issuance date and terminate on the maturity date.
: Bangladesh Government Investment Sukuk Guideline,
2020 issued by the Finance Division, Ministry of Finance
: Backed by the full faith and credit of the government.
: No litigation is pending or threatened against the Project
for the Sukuk Asset.

Sukuk Structure, Sukuk Asset, and Leased Asset:

1. Asset Name : Project of Safe Water Supply to the whole country
2. Cost of the Asset :BDT 8,851 (Eight Thousand Eight Hundred Fifty One) Crore

3. Duration of Project :11 January, 2020 to 30 June, 2025

4. Implementation Institution : Department of Public Health Engineering (DPHE)
of the Project of Underlying Sukuk
Asset
5. Sukuk Structure : Ijarah-Based
6. Sukuk Asset : Ownership of existing and future asset including usufruct
under the project “Safe Water Supply to the Whole Country” of
Government
7. Form of Sukuk Certificate : Electronic Certificate issuance by Bangladesh Bank
8. Servicing Agency : Department of Public Health and Engineering (DPHE)
9. Leased Asset : Sukuk Asset
 Other Transaction Document Information:
(a) MoU between Originator and SPV : MoU between Finance Division, Ministry of Finance and
Bangladesh Bank.
(b) Transfer of Ownership (usufruct) : Assignment letter and subsequent undertaking to repurchase
Agreement the assigned asset at agreed price to Bangladesh Bank by
Finance Division, Ministry of Finance.
(c) Lease agreement : Supplemental lease Agreement between Finance Division,
Ministry of Finance, and Bangladesh Bank.

Responsibility:

Finance Division, Ministry of Finance and Bangladesh Bank accept responsibility for the information
contained in these Terms mentioned in the prospectus. To the best of the knowledge and belief, the
Finance Division, Ministry of Finance, and Bangladesh Bank, having taken all reasonable care to ensure
that the information contained in this prospectus is in accordance with the facts, guidelines, and all
agreements. It does not omit anything likely to affect the interest of the Government, Bangladesh Bank, or
Investors.

Signed on behalf of Signed on behalf of

Bangladesh Bank Government of the People’s Republic of Bangladesh

Sd/ Sd/

By: By:
Duly authorized Duly authorized