The Bangladesh investment company decided to issue an ICB First Mudaraba Sukuk worth Tk 1,000 crore for 10 years.

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

Now the company will go through paperwork and seek clearance from 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 funding enters into an agreement with a Special Purpose Vehicle (SPV) to manage certain assets held by the SPV.

The sukuk would be issued by 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 such as clubs and associations.

Its face value will be 1000 Tk per unit.

To redeem the principal of the sukuk, 20% of the issued capital will be paid at the end of every 6th, 7th, 8th and 9th year, the company said.