ICB to issue mudaraba sukuk worth Tk 1,000 crore

Investment Corporation of Bangladesh, the state-run investment bank, has decided to issue ICB First Mudaraba Sukuk worth Tk 1,000 crore for 10 years.

The listed non-bank financial institution disclosed the information through a notification on the website of the Dhaka Stock Exchange (DSE) today.

Now, the company will complete the paper works and seek permission from the regulators, including the Bangladesh Securities and Exchange Commission.

Mudaraba sukuk is a form of Islamic security derived from the mudaraba partnership structure. The party seeking financing enters into an agreement with a special purpose vehicle (SPV) to manage certain assets owned by the SPV.

The sukuk would be issued through private placement to eligible investors, institutional investors such as banks, insurance companies, other financial institutions, local and foreign companies, government institutions and all other social institutions like clubs and associations.

Its face value would be Tk 1,000 per unit.

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, the company said.