Bangladesh Bank has extended the tenure of the country’s first Bangladesh Government Investment Sukuk, worth Tk8,000 crore, by an additional five years.

The Sukuk, issued for the Safe Water Supply Across the Country project, was initially scheduled to mature on December 25 this year.

The central bank confirmed the extension through a press release issued on Sunday, stating that the new maturity date is now December 29, 2030.

According to Bangladesh Bank, the decision was taken to safeguard the interests of Sukuk holders and ensure compliance with Shariah principles. The extension was recommended by the Shariah Advisory Committee under the central bank’s Debt Management Department and approved by the government’s Cash and Debt Management Committee (CDMC).

All required documents related to the tenure extension were finalised during a meeting of the Shariah Advisory Committee held at Bangladesh Bank’s Head Office on Sunday (November 30).

For the extended term, the government will pay a total of Tk3,804 crore as rent for using the leased Sukuk assets. While the calculated annual rental rate is 9.51 percent, the current effective rate stands at 4.69 percent, to be distributed to investors on a semi-annual basis.

Investors will have the option to continue holding the Sukuk or encash it at the end of the original term. Those wishing to opt out may apply through their respective banks to the Special Purpose Vehicle, Islamic Securities Section (Debt Management Department) of Bangladesh Bank, and will be able to liquidate their Sukuk on the original maturity date of 29 December 2025.

Bangladesh Bank said that detailed guidelines on the encashment process will be issued soon.