Beximco Group announced it would issue Sukuk worth TK 3,000 crore

Beximco Group announced it would issue Sukuk for the purpose of construction of the solar projects of Teesta Solar and Korotoa Solar, the two subsidiaries of Beximco Power Company.

A Sukuk is an Islamic financial certificate, similar to a treasury bond, which complies with Shariah laws. 50 per cent of the Sukuk would be privately placed while 25 per cent would be reserved for Beximco shareholders and the remaining 25 per cent would be floated through public offers, as the Sukuk would be listed on the local bourses upon getting the Bangladesh Securities and Exchange Commission  approval.

In December last year, the government issued the country's first-ever Tk 8,000 crore Sukuk for a safe water supply project. Investors submitted bids worth Tk 15,153 crore during the auction. Beximco's Sukuk units will have a face value of Tk 100 each, while minimum subscription size will be Tk 5,000 only in public offer with five years tenure. Sukuk holders will receive their periodical profits twice a year.

The base rate of the Sukuk has been set at 9 per cent, which means investors would be getting 9 per cent secured annual return. Also, the Sukuk holders will have the option to convert up to 100 per cent of their investments in the Sukuk into ordinary shares of Beximco within five years, said the company. The issuance of Sukuk bonds can create opportunities for investors from Malaysia to look into Bangladesh as another potential investment destination, said experts.

They also recommended the simplification of the Sukuk issuance process, streamlining regulatory procedures and offering tax incentives for both issuers and investors with regards to the Sukuk market.

As mega projects are developing in Bangladesh, there is a need for more investment. The demand for this investment can be met through Sukuk bonds, said Ali Ahsan, head of Islamic origination at Standard Chartered Bank.

Salman F Rahman highlights emplyment and entrepreniourship

The Bangladesh Investment Development Authority has taken up an initiative to train entrepreneurs countrywide. Already 25,000 at the district-level have received the training, and 4,000 of them have turned into businessmen after managing trade licences. Most of them are graduates. If each of the new 4,000 entrepreneurs creates two more businessmen, there will be another 8,000 entrepreneurs – which will encourage others. This is what Salman F Rahman said.

He added, the government is working towards creating new entrepreneurs and ways of utilising those who have already emerged as self-made entrepreneurs. The government has formed the National Skill Development Authority. Now what we need to do is pursue vocational training, chart out a career plan and make a career choice. Youths need to figure out their career goals before graduation. And the Skill Development Authority can offer the guidance they need.


Salman F Rahman, during an interview with The Business Standard further said, the government is extensively working to attract domestic and foreign investments. Numerous development works are especially ongoing at the Bangabandhu Sheikh Mujib Shilpa Nagar in Mirsarai, Japan Economic Zone in Araihazar and Matarbari. These economic zones are getting both local and foreign investments even amid the pandemic. Farmers do not get enough agro-workers during the paddy harvesting season. If there had been intensive unemployment, more workers would turn up for farm work. Even industries do not get the required skilled manpower they need. Garments and pharmaceuticals have a crisis in skilled labour. What the sectors do is they train up staffers after recruitment. Therefore, I do not think the industries, too, have any serious unemployment issues.

He understands the situation. In later part of the interview, he said, we have unemployment among graduates as they all want white-collar jobs. But most of them do not chart out what they would do after graduation. We frequently get jobseekers, many of them being Dhaka University graduates who have majored in History, Persian, Sanskrit or Pali. There is no doctor or engineer who is jobless. You will get none with vocational or pharmacy training unemployed. It is unacceptable that someone will complete graduation without any career plan and then complain about not getting a job. Our education system also needs overhauling. Universities should have collaboration with industries. Many universities have already done that, and the teamwork needs to be strengthened and institutionalised. Freelancing can be a solution for graduates who are still unemployed. The government has arranged identifications and registrations for freelancers. The country now has 10 lakh freelancers who can work from home by utilising the features of digitisation. Many graduates are going straight for freelancing after receiving computer training. The ICT ministry offers many skill development schemes and other support to them. Issues related to opening bank accounts for freelancers have been resolved, and more and more youths are opting for the profession.