The bonds will be issued under a joint initiative of the Investment Corporation of Bangladesh (ICB) and the Dubai-based Belhasa-Accom and Associates Ltd through securitisation of toll receivables of the flyover project.

Bonds worth Tk 10.32 billion will be floated at an issue rate of Tk 4.30 billion by the Jatrabari-Gulistan Flyover Securitisation Trust 2005, which is based on a Deed of Trust to be executed between ICB and Belhasa-Accom, the sources said, adding a total of 103,200 bonds, with a face value of Tk 100,000 per bond, will be issued.

"This will help reducing dependence on bank credit for implementing large scale projects," Mirza Azizul Islam, chairman of SEC, told the news agency, praising the initiative.

Asked on the details, he said the SEC had given its consent and accorded registration to the issuance of the bonds. Now the issuer will decide when the bonds will be floated, he added.

The asset backed zero coupon bonds will be the first of its kind in Bangladesh for infrastructure financing.

The issuer of the bonds will settle the payments against the bonds through raising tolls from the users of the flyovers, the sources said, without giving further details.