Bangladesh Bank Unveils Details of 20-Year Bond Reissue Auction

Bangladesh Bank has formally announced the date for the auction of a reissued 20-year Bangladesh Government Treasury Bond, signalling a continued effort to manage long-term public borrowing through the domestic debt market. According to an official notification issued on Thursday, 18 December, by the central bank’s Department of Communications and Publications (DCP), the auction will be held next Tuesday, 23 December, at the Bangladesh Bank headquarters.

The auction will involve the reissue of a previously issued 20-year government treasury bond with a coupon rate of 10.30 per cent. The bond was originally issued on 27 August 2025 and carries the International Securities Identification Number (ISIN) BD-0945081208. Through this reissue, the government aims to raise a total nominal (face) value of Tk 1,000 crore from the market.

The maturity date of the bond has been set for 27 August 2045, making it a long-term investment instrument designed to attract institutional investors seeking stable returns over an extended period. Bangladesh Bank clarified that the auction will be conducted on a price-based bidding system, meaning participants must quote the price at which they are willing to purchase the bonds, rather than bidding solely on yield.

Participation in the auction will be restricted to banks and financial institutions appointed as Primary Dealers (PDs) in government securities. However, other banks and financial institutions that are not designated as primary dealers may still participate indirectly by submitting bids on behalf of their individual or institutional clients through authorised primary dealers. This arrangement ensures broader market participation while maintaining an orderly auction process.

Bidders will be required to specify both the desired price and the quantity of bonds they wish to purchase for every Tk 100 of face value. The bidding window will remain open from 10:00 am to 12:30 pm on the auction day. Submissions must be made electronically via the Financial Market Infrastructure (FMI) platform installed at Bangladesh Bank. In exceptional circumstances, and subject to prior approval from the relevant department, bids may also be submitted manually in sealed envelopes.

Bangladesh Bank further stated that detailed instructions regarding auction participation have already been communicated to primary dealers as well as other banks and financial institutions through official correspondence. Market observers view the reissue as part of the government’s broader strategy to deepen the domestic bond market, manage fiscal financing needs, and provide long-term investment opportunities for institutional investors.

Key Details of the Treasury Bond Reissue

The upcoming auction is expected to draw keen interest from institutional investors, particularly amid ongoing efforts to strengthen the country’s sovereign debt market and ensure stable financing for long-term development needs.