Bangladesh Bank to Hold 20-Year Treasury Bond Auction

Bangladesh Bank has formally announced the auction date for the reissue of a 20-year Bangladesh Government Treasury Bond, signalling another important step in the government’s domestic debt management strategy. According to an official notification issued on Thursday, 18 December, by the central bank’s Department of Communications and Publications (DCP), the auction will be held next Tuesday, 23 December, at the Bangladesh Bank headquarters.

The auction will involve the reissue of a previously issued 20-year government treasury bond with a fixed coupon rate of 10.30 per cent. This bond was originally issued on 27 August 2025 and carries the International Securities Identification Number (ISIN) BD-0945081208. Under the reissue programme, treasury bonds with a total face value of Tk 1,000 crore will be offered to eligible participants.

The maturity date of the bond has been set for 27 August 2045, making it a long-term investment instrument designed to support fiscal financing while providing stable returns to investors. Bangladesh Bank has clarified that the reissue auction will be conducted on a price-based basis, allowing bidders to quote their desired purchase price against the face value of the bond.

Participation in the auction will be restricted primarily to banks and financial institutions appointed as Primary Dealers (PDs) in government securities. However, the central bank has also made provisions for broader market participation. Other banks and financial institutions may submit bids on behalf of their individual or institutional clients through authorised Primary Dealers, thereby ensuring wider investor access to the government securities market.

To take part in the auction, bidders must specify both the price they are willing to pay per Tk 100 face value and the quantity of bonds they wish to purchase. Bids must be submitted electronically through the Financial Market Infrastructure (FMI) system installed at Bangladesh Bank. The bidding window will remain open from 10:00 a.m. to 12:30 p.m. on the auction day. In exceptional circumstances, and subject to approval from the relevant department, bids may also be accepted manually in sealed envelopes.

Bangladesh Bank further stated that detailed participation guidelines and operational instructions have already been circulated to Primary Dealers as well as other banks and financial institutions through official correspondence. The central bank emphasised that the auction process will adhere strictly to existing rules and transparency standards to ensure a fair and efficient allocation of securities.

The reissue of long-term treasury bonds such as this one plays a crucial role in deepening Bangladesh’s domestic bond market, managing public debt sustainably, and offering investors reliable long-term investment opportunities.

Key Details of the 20-Year Treasury Bond Reissue Auction

This upcoming auction is expected to attract strong interest from long-term investors seeking stable returns in a regulated and secure investment environment.