Regulatory Alerts2025-08-04
Added
DMD Circular Letter No. 13: Regarding Sukuk Allotment Quota
The document redefines the allocation percentages for Sukuk issuances among three investor categories: Shariah-based banks, finance companies, insurance companies, and Islamic branches/windows of conventional banks are allocated 80%; conventional banks, finance companies, and insurance companies are allocated 5%; and individual investors, provident funds, deposit insurance, investment companies, corporate entities, gratuity funds, and mutual funds are allocated 15%. In cases where bids exceed the quota in any category, allotment is made pro-rata among bidders in that category, with any surplus distributed pro-rata to other categories with excess demand. This circular cancels previous circulars DMD Circular Letter No. 06 dated August 27, 2023, and DMD Circular Letter No. 05 dated January 22, 2025, and takes immediate effect.
50119
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.
Data Management Department
20 Shrabon, 1432 Date: ------------------- 4 August, 2025
DMD Circular Letter No. 13/2025
Managing Director/Chief Executive Officer All Scheduled Banks and Finance Companies Operating in Bangladesh
Dear Sir,
Regarding the re-determination of the Sukuk allotment rate in favor of investors.
With reference to DMD Circular Letter No. 06 dated 27 August 2023 and DMD Circular Letter No. 05 dated 22 January 2025 of this department on the above subject, you are informed that the Sukuk allotment rate among investors in the context of Sukuk issuance has been re-determined as follows:
| Sr. No. | Type of Investors | Percentage of Sukuk Allotment in Favor of Investors |
|---|---|---|
| 1. | Shariah-based Banks, Finance Companies, Insurance Companies, and Islamic Branches and Windows of Conventional Banks | 80% of the Issued Sukuk |
| 2. | Conventional Banks, Finance Companies, and Insurance Companies | 05% of the Issued Sukuk |
| 3. | Individual Investors, Provident Funds, Deposit Insurance, Investment Companies, Corporate Entities, Gratuity Funds, Mutual Funds, etc. | 15% of the Issued Sukuk |
- In the allotment of Sukuk among investors in the aforementioned ratios, the following procedures will be followed:
a) If bids are submitted in excess of the determined ratio in any of the 3 categories, Sukuk allotment will be given to the bidders in each category in proportion to their submitted bids; and
b) If bids are submitted less than the determined ratio in any category, the remaining Sukuk will be allotted to the bidders in other categories (if any) who submitted excess bids in proportion to their submitted bids.
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In this context, DMD Circular Letter No. 06 dated 27 August 2023 and DMD Circular Letter No. 05 dated 22 January 2025 of this department are hereby cancelled.
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This directive will take effect immediately.
Yours faithfully,
(Istekmal Hossain) Director (DMD) Phone: 9530131 Email: istequemal.hussain@bb.org.bd
Phone: 88-02-9550448, 9554896, IP: 88-02-55665301-6, Fax: 88-02-9530479, Web: www.bb.org.bd