DMD Circular Letter No. 06: Regarding Sukuk Allotment Quota

50119

Bangladesh Bank
(Central Bank of Bangladesh)
Head Office
Motijheel, Dhaka-1000
Bangladesh.

Data Management Department

11 Bhadra 1430
Date: -------------------
27 August 2023

DMD Circular Letter No.-06

Managing Director / Chief Executive
All Scheduled Banks and Financial Institutions of Bangladesh

Dear Sir,

Regarding Sukuk allotment in favor of investors.

In accordance with the 'Bangladesh Government Investment Sukuk Guidelines, 2020' issued through DMD Circular No.-05 dated 21/10/2020 of this department, Sukuk allotment in favor of investors shall be provided as follows in the issuance of Sukuk:

Category	Type of Investors	Percentage of Sukuk Allotment in Favor of Investors
1.	Shariah-based banks, financial institutions, and insurance companies	85% of the issued Sukuk
2.	Islamic branches and windows of conventional banks	10% of the issued Sukuk
3.	Individual investors, provident funds, deposit insurance, etc.	5% of the issued Sukuk

In addition, alongside the aforementioned three categories, all conventional banks/financial institutions/insurance companies may participate in the Sukuk auction, and the following procedure shall be followed for Sukuk allotment in favor of investors:

a) If bids are submitted in excess of the determined ratio in all three categories, Sukuk shall be allotted on a pro-rata basis among the bidders in each category; b) If bids are submitted below the determined ratio in one category and above the determined ratio in another category, the remaining Sukuk shall be allotted on a pro-rata basis among the bidders who submitted bids above the determined ratio; and c) If the required subscription is not met in the aforementioned three categories, the remaining Sukuk shall be allotted on a proportional basis among the participating conventional banks, financial institutions, and insurance companies in the auction.

These instructions shall take immediate effect.

Yours faithfully,

(Signature)
(Masuma Sultana)
Additional Director
Phone: 9530209
E-mail: masuma.sultana@bb.org.bd

Phone: 88-02-9550448, 9554896, IP: 88-02-55665001-6, Fax: 88-02-9530479, www.bb.org.bd