Sukuk Allotment Quota Stipulated by Bangladesh Bank 

A Sukuk allotment quota has been specified by Bangladesh Bank (BB), with priority given to Shariah-based Islamic banks, non-banking financial institutions (NBFIs) and insurance companies for the second auction of the bonds, according to officials. As per BB criteria, the Shariah-based Islamic banks, NBFIs and insurance companies would be eligible to obtain 70% of Sukuk certificates, while conventional banks and other financial institutions would be eligible to receive 15% of the bonds.

Why it Matters?

The emphasis on the Shariah-based Islamic banks, NBFIs and insurance companies is with the aim of creating new investment opportunities for them, it was understood, as this was the explanation given behind the allotment criteria.

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