Written by The Banking Post
The Bangladesh Bank has revised the allocation rates for Islamic bonds, known as Sukuk, across different categories of investors. Additionally, two previously issued circulars regarding Sukuk allocations have been cancelled.
A new circular outlining the changes was issued by the central bank’s Debt Management Department.
According to the new guidelines, the allocation of Sukuk bonds will be as follows:
- Shariah-based banks, financial institutions, insurance companies, and Islamic branches/windows of conventional banks: 80% of total allocation
- Conventional banks, finance companies, and insurance companies: 5% of total allocation
- Individual investors, provident funds, gratuity funds, investment companies, deposit insurance, corporate entities, and mutual funds: 15% of total allocation
The circular further states that if any of the three investor categories submit bids exceeding their designated allocation percentage, the bonds will be distributed proportionately among all bidders within that category.
Conversely, if a category does not submit bids equal to its allocated share, the unallocated Sukuk bonds will be redistributed among the other categories based on the proportion of their bids.
This move by Bangladesh Bank is expected to enhance the structure and transparency of Shariah-compliant investment systems.
