Bangladesh Bank (BB) has revised the allocation rates of Sukuk among various investor categories to ensure wider participation in the Islamic securities market. According to a circular issued by the central bank, the revised allocation policy applies to Sukuk issued by the government and other eligible entities.
Under the new arrangement, 50 percent of an issued Sukuk will be allocated to Shariah-based banks, finance companies, and insurance companies. Another 30 percent is reserved for Islamic branches and windows of conventional banks. Individual investors will be eligible for 10 percent of the Sukuk, while the remaining 10 percent will be allocated to other institutional investors, including conventional banks, finance companies, insurance companies, provident funds, corporate institutions, gratuity funds, and mutual funds.
The central bank emphasized that the allocation among investors will adhere to the prescribed proportions. If the demand from a particular category exceeds its designated quota, the Sukuk will be distributed among applicants of that category on a proportionate basis. This latest circular cancels the previous circular letter issued by the concerned department on August 4, 2025, and the new instructions will come into effect immediately.
FAQs on the Revised Sukuk Allocation Policy
{"question":"What is Sukuk?","answer":"Sukuk, also known as Islamic bonds, are financial certificates that comply with Islamic law. They represent ownership in an underlying asset and generate returns through asset performance."}
{"question":"Why did Bangladesh Bank revise the Sukuk allocation rates?","answer":"The revision aims to ensure wider participation in the Islamic securities market by providing a fair allocation of Sukuk among different investor categories."}
{"question":"How is the Sukuk allocation divided among investors?","answer":"50 percent is allocated to Shariah-based banks, finance companies, and insurance companies. 30 percent is reserved for Islamic branches and windows of conventional banks. Individual investors receive 10 percent, and the remaining 10 percent is for other institutional investors."}
{"question":"What happens if demand exceeds the allocated quota for a category?","answer":"If demand from a particular category exceeds its designated quota, the Sukuk will be distributed among applicants of that category on a proportionate basis."}
