BB to hold Tk 6,667cr bond buyback auction

Bangladesh Bank is set to hold a reverse auction tomorrow to buy back two-year government treasury bonds worth Tk 6,666.58 crore.

The central bank announced the move in a press release issued on October 5.

Tap here to add The Daily Star as a trusted source

According to the press release, the auction involves treasury bonds issued on November 6, 2024, which carry a coupon rate of 12.30 percent and are scheduled to mature on November 6, 2026.

The buyback will be conducted following a multiple-price-based reverse auction procedure, with the settlement date fixed for October 12, 2026.

Primary dealer (PD) banks can submit bids directly, while non-PD banks and finance companies holding current accounts with Bangladesh Bank can participate through linked PDs.

Participating entities will be allowed to submit competitive bids for their own accounts, as well as competitive or non-competitive bids on behalf of their clients.

Bids specifying the desired price per Tk 100 face value and the quantity of bonds offered must be submitted electronically via the central bank’s Financial Market Infrastructure (FMI) system between 10am and 12pm on the auction day.

Manual submissions in sealed covers will be allowed under special circumstances with prior approval.

The government is buying back the bonds in order to ensure proper debt repayment management and avoid repaying a large amount at once when the bonds mature.

It will provide investors with an additional liquidity window to rebalance or exit their Treasury holdings.