Services Provided by IDLC

IDLC will act as an intermediary between Bangladesh Bank & relevant investors by providing the following clientele services for individuals & institutions seeking to invest in Government Securities:

• Provide coupon/yield related information as well as information regarding the investment process
• Open Sub-Business Partner Identification (Sub-BP ID) in Bangladesh Bank in favour of individuals/institutions to participate in the auctions.
• Take requisitions to undertake buy/sell activities through the primary auction, or in the secondary market.
• Disburse principal at sale/maturity of securities.
• Perform relevant reconciliation of client accounts.

Contact Person Information

For any queries relating to investment in government securities, please contact with:

Frequently Asked Questions (FAQs)

What is a Government Security?

A Government Security is a tradable debt instrument issued by sovereign Government. Such securities can be short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).

What are the major Government Securities (G-Sec) in Bangladesh?

Major G-Secs in Bangladesh are:

a. Treasury Bills (T-Bills)

b. Bangladesh Government Treasury Bond (BGTB)

Who issues T-Bills and BGTBs?

As per agreement between The Government of Bangladesh and Bangladesh Bank in 1985 (Treasury rules-1998 (Appendix-1, Section-3) and Bangladesh Bank (BB) Order-1972, article 20 empowers BB to issue new loans and manage public debt for the Government.

What are the main features of Treasury Bills?

• Three tenors are available namely 91 day, 182 day and 364 day.
• Price is determined by the market
• They are issued at a discount and redeemed at the face value at maturity.
• Tradable in the secondary market.
• Issued in scripless form.
• The Central Bank releases monthly calendar through BB website.

What are the main features of Treasury Bonds?

• Risk free fixed coupon bearing debt instrument
• Different maturities are available namely 2 yrs, 5 yrs, 10 yrs, 15 yrs and 20 years.
• It carries half yearly coupon payment and the principal is repaid on maturity.
• Yield is determined by the market.
• Tradable instrument in the secondary market.
• Issued in scripless form.

How are T-Bills and BGTBs issued by Bangladesh Bank?

• Auctions of Treasury Bills are held following a pre-announced auction calendar with a specified amount in the Bangladesh Bank website. Bidders quote their prices. The Auction Committee determines the cut-off price from the offered prices.
• BGTB of a particular tenor are held following a pre-announced auction calendar with the specific amount in the Bangladesh Bank website. In case of a new issue, bidders quote their expected yields and in the re-issue auction, they have to quote the price.

Upcoming auction details are updated in the following url: https://www.bb.org.bd/monetaryactivity/auc_calendar.php

What Benefits Can you derive by Investing Treasury Bonds?

• It is a form of risk-free investment, since it is issued by the sovereign government.
• Since these bonds are tradable in the secondary market, they are considered liquid.
• All receipts of interest and maturity are fully repatriable, in case of foreign investment.

What is the minimum denomination of investment?

Minimum investment amount is taka one lac (BDT 100,000) and its multiples.

Can any individual investor own G-Secs?

Yes, any individual can own Government securities in Bangladesh.

Can foreigners/non-residents buy G-Secs?

Yes, foreigners/non-resident individual/institutions can buy Bangladesh Government Treasury Bonds (BGTB), but not Treasury Bills. Eligible foreign investors are permitted to purchase, sell or transfer Treasury Bonds with any maturity period.

Is premature encashment available for G-Secs?

No, premature encashment is not available. However, holder can sell G-Secs in the OTC and secondary markets.