Beximco's sukuk price increases by 5.43%
Beximco Green Sukuk Al Istisna'a: Maturity Extension Under Consideration
The Beximco Green Sukuk Al Istisna'a, a five-year financial instrument issued by Beximco Limited, has seen a recent surge in price, reaching Tk48.50 as of August 6, 2025. This Islamic bond, which matures in December 2026, requires Beximco to repay approximately Tk2,800 crore at maturity.
However, the repayment status of the sukuk is currently uncertain, as market reports suggest potential financial pressure or the need for reassessment as the maturity approaches. In response to these concerns, a committee-led review is underway or planned, which could consider extending the maturity of the sukuk.
The committee, including top officials from the Bangladesh Bank, Investment Corporation of Bangladesh (ICB), the Bangladesh Securities and Exchange Commission (BSEC), the Power Development Board (PDB), and several leading banks, aims to review and restructure the terms of the Beximco Green Sukuk Al Istisna'a to ensure principal recovery for investors.
The extension of the sukuk's tenure is intended to provide more time for Beximco to generate cash to repay the principal. The funds raised from the sukuk were intended for investment in renewable energy projects such as the Teesta Solar 200 MW project in Gaibandha and the Korotoa Solar 30 MW project in Panchagarh.
The Teesta Solar project is currently running, while the Korotoa Solar project is still under construction. Beximco Limited, a company of the Beximco Group, issued the Beximco Green Sukuk Al Istisna'a and raised Tk3,000 crore funds in 2021.
As of today, a total of 56,831 units of the Beximco Green Sukuk Al Istisna'a were traded in 48 transactions. The trading value of a single unit was Tk27 lakh. Around 5,600 institutional and retail investors hold the sukuk, which matures in December 2026.
The Beximco Green Sukuk Al Istisna'a started trading on 13 January 2022. The decline in the unit price occurred after the fall of the previous government in 2024, with the price falling from Tk85 each to Tk43 each on 5 September 2024. Concerns have mounted in recent months over whether Beximco will be able to generate enough cash to repay the principal, especially as Beximco Group is in trouble after the regime change in August last year.
The Beximco Green Sukuk Al Istisna'a is under growing scrutiny as investors worry over principal recovery. The Bangladesh Bank, along with key regulators, are planning to extend the five-year tenure of the Beximco Green Sukuk Al Istisna'a to address these concerns. No official extension has yet been confirmed in the publicly available information as of early August 2025.
It is important to note that this article is based on available information as of August 2025 and does not contain any predictions or speculations. Readers are advised to consult with financial advisors for personalised investment advice.
The management is considering a maturity extension for the Beximco Green Sukuk Al Istisna'a to ensure principal recovery for investors, as the repayment status of the Islamic bond is uncertain due to potential financial pressure. The funds raised from investing in the sukuk were intended for business activities, such as investments in renewable energy projects.
