Bangladesh Bank Sets Date for 20-Year Treasury Bond Reissue Auction

Bangladesh Bank has formally announced the date for the reissue auction of a 20-year Bangladesh Government Treasury Bond, reinforcing the government’s long-term borrowing strategy and providing fresh opportunities for institutional investors. According to an official notification issued by the central bank’s Department of Communications and Publications (DCP) on Thursday, 18 December, the auction will be held on Tuesday, 23 December, at the Bangladesh Bank headquarters.

The auction will involve the reissue of a previously issued 20-year Bangladesh Government Treasury Bond, originally floated on 27 August 2025, carrying a coupon rate of 10.30 per cent. Through this reissue, bonds with a total face value of Tk 1,000 crore will be offered to the market. The bond bears the International Securities Identification Number (ISIN) BD-0945081208 and is scheduled to mature on 27 August 2045, making it a long-term investment instrument aimed primarily at institutional and large-scale investors seeking stable returns over an extended horizon.

Bangladesh Bank clarified that the reissue auction will be conducted on a price-based bidding system, meaning that participants will quote the price they are willing to pay per Tk 100 face value of the bond, along with the quantity they wish to purchase. The bids will be evaluated accordingly to determine the final allocation.

Participation in the auction will be limited directly to banks and financial institutions appointed as Primary Dealers (PDs) in government securities. However, the central bank has also ensured broader market access by allowing other banks and financial institutions to submit bids on behalf of their individual or institutional clients through these Primary Dealers. This mechanism is designed to deepen market participation while maintaining orderly auction procedures.

Bids must be submitted electronically through the Financial Market Infrastructure (FMI) platform 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 prior approval from the relevant department, manual bids may also be accepted in sealed envelopes.

Bangladesh Bank further noted that detailed operational guidelines and participation instructions have already been circulated to Primary Dealers as well as other banks and financial institutions through official correspondence. The reissue of long-term treasury bonds is viewed as a key component of the government’s debt management framework, helping to finance development expenditure while offering investors a secure, government-backed investment avenue.

Key Details of the Treasury Bond Reissue

This auction is expected to draw significant interest from market participants, reflecting continued demand for long-term government securities amid evolving macroeconomic conditions.