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The Investment Corporation of Bangladesh (ICB) will issue Tk 1,000 crore Mudaraba Sukuk bond to invest in the capital market and money market subject to the approval of the securities regulator and other relevant regulators.
The ICB board has decided to issue the bond styled “ICB 1st Mudaraba Sukuk” for 10 years subject to the approval of Bangladesh Securities and Exchange Commission (BSEC) and others,” said the state-owned financial institutions in a statement on Monday.
The face value per unit is Tk 1,000. The eligible investors are all citizens of Bangladesh (resident and non-resident), institutional investors such as banks, insurances and other financial institutions, domestic and foreign companies, government institutions and corporations, all other social institutions like clubs and associations.
The minimum subscription of the bond is one lot of 100 units valued at Tk 1,00,000 for institutions and one lot of five units valued at Tk 5,000 for small investors.
To redeem the principal of Sukuk, 20 per cent of the issued capital will be paid at the end of each 6th, 7th, 8th and 9th year (in terms of the face value or market value whichever is lower during 6th to 9th year) and the residuals shall be paid at the market price at the end of 10th year to the sukuk holders.
At the end of the year, minimum 75 per cent of the net profit will be distributed and the rest will be retained. Minimum return will be the market yields of Dhaka Stock Exchange (DSE). In this case at least 70 per cent of the fund will be invested in the capital market and the rest will be invested in the money market.
Tax features of the Sukuk will be as per applicable law. It will be easily transferable (non-listed).
