Government Securities Investment Window

City Bank provides the following services Under Government Securities Investment Window for the its clients:

  • Providing advice on Investment in treasury bill and bond
  • Making arrangement to open securities account (Sub-BP ID with Bangladesh Bank)
  • Executing buy/sell orders as per client requisition
  • Completing transactions related to transferring coupon, principal and/or other proceeds in connection with buying and selling securities
BPID Opening Form
BPID Opening Documents Required
Applicable Charges
Government Securities Transaction Form
Government Securities Transfer Request Form

Contact details

SL Name Position Mobile Email Devision
1 Iqbal Mahmud Unit Head, Bond Management & Account Inquiry 8801727664462 iqbal.mahmud@citybankplc.com Operations
2 Md. Kabir Hossain Manager, Government Bonds Management 8801712107694 kabir.hossain@citybankplc.com Operations
3 Md. Abdul Halim Mollah Junior Officer, Government Bond Management 8801914443333 abdul.mollah@citybankplc.com Operations
4 Swarajit Kar Senior Manager, Mid Office & MIS 8801777227533 swarajit.kar@citybankplc.com Operations
5 A.S.M. Mohibur Rahman Head of Treasury Operations 8801712874870 asm.mohibur@citybankplc.com Operations
6 Mohammad Shahazadul Alam Khan Head of Asset Liability Management 8801915691747 shahazadul.alam@citybankplc.com Treasury & Market Risk
7 Sadat Ahmed Nabil Manager, Asset Liability Management & Money Market 8801638211096 sadat.nabil@citybankplc.com Treasury & Market Risk
8 Milton D' Rozario Senior Customer Service Manager, Principal Office Branch 8801819283861 milton.rozario@citybankplc.com Retail Banking
9 Al Fahad Hossain Senior Customer Service Manager, Gulshan Avenue Branch 8801715005579 fahad.hossain@citybankplc.com Retail Banking
10 Md. Anik Islam Bhuiyan Assistant Customer Service Manager, Banani Branch 8801752544225 anik.bhuiyan@citybankplc.com Retail Banking
11 Farhana Akter Senior Customer Service Manager, Gulshan Branch 8801610001385 farhana-akter@citybankplc.com Retail Banking
12 Rabeya Rahman Assistant Customer Service Manager, Agrabad Branch 8801620008552 rabeya.rahman@citybankplc.com Retail Banking
13 Saida Ferdosi Senior Customer Service Manager, Dhanmondi Branch 8801552483112 saida.ferdosi@citybankplc.com Retail Banking
14 Mufti Abdul Kabi Associate Relationship Manager, Chatak Agri Branch 8801792252223 abdul.kabi@citybankplc.com Retail Banking

Frequently Asked Questions (FAQs)

1. What is a Government Security?

A Government Security is a tradable instrument issued by sovereign Government. It acknowledges the Government's debt obligation. Such securities are 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).

2. 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)

3. Who issued 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.

4. 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 script less form.
  • The central Bank releases monthly calendar through BB website.

5. What are the main features of Treasury Bonds?

  • Risk free fixed coupon bearing debt instrument
  • Maturities are available within 2-20 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 script less form.

6. How an Investor can invest in Governmentt securities through The City Bank Ltd?

An interested investor needs to have a Sub-BP (Sub –Business Partner) ID to invest in tradable government securities. An investor (both individual and corporate) can open Sub-BP ID from Bangladesh Bank through The City Bank Ltd. After opening Sub-BP ID, an investor can participate in government securities auction through The City Bank Ltd and can also buy/sell tradable government securities from/in the secondary market through The City Bank Ltd. If investment is made through The City Bank Ltd, The City Bank Ltd will also transfer the coupon and principal amount collected from Bangladesh Bank to investor’s bank account.

7. How T-Bills and BGTBs issued?

  • Weekly (usually on Sunday) auctions of Treasury Bills are held following a pre-announced auction calendar with a specified amount. Bidders quote their prices. The Auction Committee determines the cut-off price from the offered prices.
  • Weekly (usually on Tuesday) auction of BGTB of a particular tenor is held following a pre-announced auction calendar with the specific amount. In case of new issue bidders quote their expected yields and in re-issue auction they have to quote price.

8. What Benefits Can you derive by Investing Treasury Bonds?

  • It is an absolutely risk free investment, since it is issued by the sovereign government.
  • One can get the attractive rate of interest since the yield is determined in the market.
  • Since these bonds are tradable in the secondary market, one can obtain instant liquidity by selling them in the market.
  • All receipts of interest and maturity are fully repatriable in case of foreign investment.
  • One can get the best services from Central Bank of Bangladesh which maintain fully automated script less depository system named Market Infrastructure (MI) Module.

9. Who can place bid in the auction?

Primary Dealers (PDs) can place bids in auction. Other commercial banks and Non-Bank Financial institutions, Insurance companies, corporate, individuals, provident fund etc. can also participate in auction through PDs.

10. What is the minimum bid amount in an auction?

Minimum bid amount is Taka one lac and its multiples.

11. Who can invest in G-sec.?

Individuals and Institutions residents in Bangladesh such as:

  • Banks, non-bank financial institutions
  • Insurance companies
  • Corporate bodies
  • Authorities responsible for the management of provident funds, pension funds etc.

12. Can any individual investor buy G-Secs?

Yes, any individual can buy Government security through Primary Dealers/Scheduled Banks in auction. Individuals can also buy G-Sec from any PDs/Banks/NBFIs in the secondary market.

13. How can any individual buy G-Secs?

Scheduled Banks and financial institutions maintaining accounts with Motijheel Office of Bangladesh Bank will take initiative to open Business Partner Identification (BP ID) in favour of their individual/institutional customers in Market Infrastructure (MI) Module of Bangladesh Bank to participate in the auctions. Individuals may also buy or sell government securities in secondary market over the counter (OTC)/Trader Work Station (TWS) of MI module.

14. Can foreigners/Non-resident buy G-Secs?

Yes, Foreigners/Non-resident individual/institutions can buy Bangladesh Government Treasury Bond (BGTB) from Primary and Secondary market through Primary Dealers and other Banks. The purchase value of bonds shall be paid from the investors fund in Non-resident Foreign currency Account and in Non-resident Investors Taka Account (NITA) maintained with a bank in Bangladesh. Coupon payments and resale/redemption proceeds are freely transferrable abroad in foreign currency after deduction of applicable taxes. Bonds purchased by a non-resident may freely be resold anytime (no lock in period) to any resident or non-resident.

15. What type of Bonds Foreign investor can purchase?

Eligible foreign investors are permitted to purchase, sell or transfer Treasury Bonds with any maturity period.

16. What is the minimum bid amount in an auction?

Minimum bid amount is Taka one lac/0.1 million and its multiples.

17. Is premature encashment available for G-Secs ?

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

18. Is it possible to borrow against Govt securities?

Banks and financial institutions can use government securities as collateral only to borrow funds in the repo market.