Initially, treasury bonds worth Tk1,010 crore having five years and 10 years maturity periods will be enlisted on the DSE.

Five-year bonds worth Tk 6.68 billion (Tk 667.70 cr) will offer 7.5 percent interest while the 10-year bonds worth Tk 3.4267 billion (Tk 342.67 crore) will offer 8.5 percent interest. The minimum investment in these bonds is Tk 1 lakh.

Welcoming the new instrument, DSE President Ahmed Iqbal Hassan said the bourse has long been championing diversification of securities in the secondary market to offer flexibility to investors for ensuring a vibrant secondary market.

Terming the move a milestone for the capital market, DSE president said, "The present market lacks diversity, resulting in failure to attract potential investors."

"So, we view the treasury bonds as effective solutions for investors, who are looking for long-term secured and guaranteed investment," Iqbal added.

He said the DSE offers a perfect launch pad for these debt instruments.

Chief Executive Officer of DSE Salahuddin Ahmed Khan said, "In the absence of a large number of good scrips, the bonds should woo investors."

He said since return on investment is guaranteed these bonds will generate interest among the investors.

The original primary dealers of the government bonds are eight commercial banks and a non-banking financial institution. But among these nine, only one -- the National Credit and Commerce Bank Limited (NCCBL) -- has stock exchange membership.

Other primary dealers are Sonali Bank, Janata Bank, Agrani Bank, Prime Bank Limited, Uttara Bank Limited, Southeast Bank Limited, Jamuna Bank Limited and International Leasing and Financial Service Limited.