Bangladesh Bank has revised the allocation quota for Islamic Shariah-compliant Sukuk bonds, reserving 10% of total allocations exclusively for individual retail investors to broaden public participation in government-backed Islamic securities.
The Debt Management Department of the central bank issued a circular on Monday outlining the new distribution framework to all managing directors and chief executive officers of scheduled banks and non-bank financial institutions.
Under the revised guidelines, 50% of a Sukuk issuance will be allocated to full-fledged Shariah-compliant banks, financial institutions, and insurance companies.
Conventional banks' dedicated Islamic branches and windows will receive 30%, while 10% is set aside for individual retail investors.
The remaining 10% is designated for conventional financial institutions, corporate entities, provident funds, deposit insurance funds, investment firms, gratuity funds, and mutual funds.
Previously, individual investors lacked a dedicated quota and had to compete within a shared 15% allotment alongside corporate bodies, provident funds, and investment firms.
Institutional allocations were formerly split between Shariah-based institutions and Islamic windows (80% combined) and conventional entities (5%).
The central bank's policy shift aims to encourage non-bank savings and expand investment options for individuals seeking ethical and Shariah-compliant financial instruments.
By establishing a guaranteed retail tranche, the regulator ensures small-scale individual investors face less competition from large institutional funds during primary Sukuk issuances for national development projects.
