The Government of Bangladesh has announced plans to secure a substantial loan of BDT 10,000 crore through the newly formed Sammilito Islami Bank. The funding will be raised via a 10-year Shariah-compliant Islamic bond, or sukuk. According to the Ministry of Finance, this will represent the largest investment ever directed to the newly established bank, with the government expected to earn a return of 9.75% per annum.
Banking sources indicate that the move is intended to provide long-term, low-interest financing for development projects while simultaneously creating safe investment opportunities within the Islamic banking sector.
Key Developments and Approvals
The Shariah Advisory Committee of Bangladesh Bank convened under the chairmanship of Deputy Governor Md. Kabir Ahmed on 7–8 January to finalise the sukuk issuance framework. The committee approved a lease-based structure for the issuance, which will underpin the financial instrument with government assets.
Specifically, seven housing projects under the Public Works Department for government employees, along with selected national train services, have been designated as the foundational assets for the sukuk. The new issuance has been named “Bangladesh Government Special Sukuk-1” and will be placed directly with the bank via a private placement method. Government officials have confirmed that the funds will be drawn from the bank on 14 January.
| Details of Sukuk Issue | Information |
|---|---|
| Issuing Institution | Sammilito Islami Bank |
| Loan Amount | BDT 10,000 crore |
| Tenure | 10 years |
| Expected Annual Return | 9.75% |
| Asset Backing | 7 PWD housing projects & select train services |
| Issuance Type | Private placement |
| Drawdown Date | 14 January |
| Structure | Lease-based (Ijara) |
Background of Sammilito Islami Bank
The formation of Sammilito Islami Bank was a response to the crises faced by several predecessor institutions, including Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank. Mismanagement and fraudulent loan practices had left these banks in precarious financial positions. The merger of these five entities aimed to stabilise the sector, reduce operational redundancies, and improve efficiency. Post-merger, overlapping branches have been consolidated, and employee salaries and allowances reduced by 20% to lower operating costs.
Financial analysts suggest that the sukuk issuance will provide the government with stable capital for infrastructure and development projects, while simultaneously strengthening the bank and opening new avenues for secure, long-term investment in the Islamic finance sector. The move is widely seen as a step toward consolidating and revitalising Bangladesh’s Islamic banking landscape.