The Bangladesh Bank has issued the “CIBRR-1 Economic Development Sukuk”, with total bids worth nearly 12.30 times the offered amount, reflecting strong investor demand for the latest government Islamic investment instrument.
According to a press release, the auction was held for the 8th Bangladesh Government Investment Sukuk, issued against the Rural Road Important Bridge Construction Project, with a face value of Tk5,900 crore and a tenure of 7 years. The Sukuk carries an annual lease return (rent rate) of 10.40%.
The central bank said a total of Tk72,597.94 crore in bids was submitted by a wide range of investors, including Islamic banks and financial institutions, Islamic banking branches and windows of conventional banks, individual investors, and provident funds. As the bids exceeded the issued amount by around 12.30 times, allocation was made on a proportional basis among investors.
For the first time, the Sukuk auction was conducted using the Bangladesh Bank’s in-house digital platform, the Shariah Securities Module (SSM).
The central bank said the Sukuk issuance is enabling the government to channel liquidity from Shariah-based banks and financial institutions into development projects, while also creating alternative investment avenues for Islamic financial institutions.
It further noted that the instrument provides individual investors in the country with opportunities to invest in Shariah-compliant securities.
Banks and financial institutions will be able to use the Sukuk as part of their Statutory Liquidity Reserve (SLR), while Islamic banking branches and windows of conventional banks can use holdings of the Sukuk as collateral to access the Islamic Banks Liquidity Facility (IBLF) from Bangladesh Bank.
From 14 May 2026, Shariah-based banks, financial institutions, Islamic insurance companies, conventional banks and insurers, Islamic banking branches and windows, as well as individual investors, will be able to buy and sell the Sukuk in the secondary market, the central bank said.
In total, Tk441.62 crore worth of Sukuk was allocated against 1,011 successful bids from individual investors, provident funds, mutual funds and deposit insurance-related categories.
The Bangladesh Bank said the 8th government investment Sukuk is expected to play a positive role in improving rural infrastructure and socio-economic conditions in the project area through the development of bridges and rural roads.
Source: https://www.tbsnews.net/economy/bb-floats-cibrr-1-economic-development-sukuk-demand-oversubscribed-123-times-1438571
