Bangladesh Bank
বাংলা      

Government Security Market of Bangladesh consists of Treasury Bill, Bangladesh Government Treasury Bond (BGTB) and Bangladesh Government Investment Sukuk (BGIS). Banks, Non-bank Financial Institutions, Insurance companies and Individuals can invest in Government securities. Non-resident individuals/institutions can also purchase Bangladesh Government Treasury Bond (BGTB) and Bangladesh Government Investment Sukuk (BGIS) from Primary and Secondary market through Primary Dealers and other Banks in Bangladesh using funds deposited in their non Resident Foreign Currency Account (NFCA) or a Non Resident Investors Taka Account (NITA) with a bank in Bangladesh in name of purchaser. Coupon and principal amount can be repatriated freely.

Bangladesh Government Treasury Bill
   Main features:

  1. Short term government securities (Up to One year)
  2. Three tenors are available namely 91days, 182 days and 364 days.
  3. Interest rate is determined by auction.
  4. Tradable in the secondary market.
  5. Bid can be submitted for TK. 1,00,000/- or any amount of its multiple on auction.

Eligibility: Resident individuals and institutions of Bangladesh such as

  1. Banks, non-bank financial institutions.
  2. Insurance companies.
  3. Corporate bodies.
  4. Authorities responsible for the management of provident funds, pension funds etc.
  5. Individuals.  

Method of Investment:

  1. Primary Market: From weekly (usually on Sunday) auctions through Primary Dealers (Nominated Banks/FI).
  2. Secondary Market: From any bank or financial institution at anytime. 

Bangladesh Government Treasury Bonds(BGTB)
  Main features:

  1. Long term government securities (More than One year).
  2. Maturities are available for 2, 5, 10, 15 & 20 years.
  3. Coupon is paid half yearly and the principal is repaid on maturity. 
  4. Coupon Rate is determined by auction.
  5. Tradable in the secondary market.
  6. Bid can be submitted for TK. 1,00,000/- or any amount of its multiple on auction.
  7. Tax Rebate Facilities are available for Individual Investors for investing in Treasury Bond According to Finance Act-2020, (Under Section 51 of Income Tax Ordinance, 1984) .

Eligibility: Resident individuals and Institutions of Bangladesh such as-

  1. Banks, non-bank financial institutions.
  2. Insurance companies.
  3. Corporate bodies.
  4. Provident funds, pension funds etc.   
  5. Individuals.  

  Method of Investment:

  1. Primary Market: From weekly (usually on Tuesday) auctions through Primary Dealers.
  2. Secondary Market: From any bank or financial institution at anytime.

Non-resident individuals/institutions can also purchase Bangladesh Government Treasury Bond (BGTB) from Primary and Secondary market through Primary Dealers and other Banks in Bangladesh using funds deposited in their non Resident Foreign Currency Account (NFCA) or a Non Resident Investors Taka Account (NITA) with a bank in Bangladesh in name of purchaser. Coupon and principal amount can be repatriated freely.
Bangladesh Government Investment Sukuk(BGIS)
Main features

  1. Shariah based government security.
  2. Tenor and mode of investment of Sukuk contact determined on the basis of the project.
  3. Profit can earned after every six months and the principal can be obtained after the end of tenor.
  4. Bid can be submitted for TK. 10,000/- or any amount of its multiple on auction.

Eligibility & Method of Investment: BGIS were first issued 29th December, 2020 to utilize the funds of shari’ah based banks, FI’s, Insurances and individual investors. Investors can invest amounts in multiples of Tk.10,000/00. Tenor of Sukuk may vary based on the underlying investment contract. Profit and principal amount can be repatriated freely.  It can be traded in the secondary market.

Primary Market: In Primary market securities (T-bills, bonds and BGIS) are issued first time for the investors. T-bills and bonds are issued on the basis of competitive auction. Normally auction held twice in a week, on the basis of monthly auction calendar. T-bills’ auction held on Sunday and Bonds’ auction held on Tuesday. Only Primary Dealers (PD) can submit bids in the auctions. Other institutions and individuals can submit bids in auction through the PDs. At present 24 banks are performing as Primary Dealer.
Secondary Market: Bangladesh Bank initiated to automate the process of trading and settlement of Government securities transactions in October 2011. The secondary market of Government securities of Bangladesh is comprised of Over the Counter (OTC) and Trader Work Station (TWS). Both the procedures are the integral parts of Market Infrastructure Module (MI Module)-the automated auction and trading platform of government securities. Besides these systems, government securities are also traded in Dhaka Stock Exchange (DSE) and Chattogram Stock Exchange (CSE). more...