The Government of Bangladesh is set to borrow BDT 10,000 crore from the newly formed Sammilito Islami Bank through a 10-year Shariah-compliant sukuk (Islamic bond). This marks the largest investment to date for the bank, which is projected to generate an annual return of 9.75% for the government.
According to Bangladesh Bank, a meeting of the Shariah Advisory Committee, chaired by the bank’s Deputy Governor Md. Kabir Ahmed on 7–8 January, approved the issuance of the sukuk using a lease (Ijara) structure. Committee members unanimously agreed that this method would comply with Islamic finance principles while ensuring robust returns.
The sukuk will be backed by selected public assets, including seven housing projects managed by the Public Works Department for government employees, as well as certain train services across the country. The issuance, titled “Bangladesh Government Special Sukuk-1”, will be executed through private placement, directly with Sammilito Islami Bank. The government is scheduled to receive the funds on 14 January 2026.
Officials from the Ministry of Finance and related sectors highlighted that this sukuk will enable the government to mobilise substantial funds for development projects at a low cost, while creating long-term financing opportunities. Simultaneously, it is expected to provide a secure investment avenue for the Islamic banking sector.
Sammilito Islami Bank was established to address the financial crises of several predecessor banks. During the previous administration, certain banks experienced fraudulent loan withdrawals, leading to a deepening financial crisis. In response, Exim, Social Islami, First Security Islami, Global Islami, and Union banks were merged to form Sammilito Islami Bank.
The bank’s capital structure, branch network, and key metrics are summarised below:
| Item | Amount / Information |
|---|---|
| Paid-up Capital | BDT 35,000 crore (Government: BDT 20,000 crore; Shareholders: BDT 15,000 crore) |
| Authorised Capital | BDT 40,000 crore |
| Total Deposits (5 merged banks) | BDT 1,42,000 crore (7.5 million depositors) |
| Total Loans | BDT 1,93,000 crore (majority non-performing) |
| Branches | 760 |
| Sub-Branches | 698 |
| Agent Banking Outlets | 511 |
| ATMs | 975 |
| Reduction in Staff Salary & Benefits | 20% |
Post-merger, overlapping branches in the same area will be consolidated, and operating costs reduced, including a 20% cut in staff salaries and benefits.
The sukuk issuance is expected to ensure stable long-term funding for the bank, while simultaneously strengthening the Islamic banking sector by providing a safe and Shariah-compliant investment vehicle.