Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has issued a guideline for bidding of the Bangladesh Government Islami Investment Bond, generally known as Ismali Bond aiming to crate a separate market in the country , officials said.
Only Islamic Shariah-based banks and non-banking financial institutions (NBFIs) will be allowed to participate in the bidding of the bonds from January 1, 2015 through profit sharing ratio (PSR) basis, according to the guidelines, issued recently.
The bonds will be issued for the tenure of three and six months, it added.
The base rate will be calculated on the basis of the provisional profit rates against the 3-month and 6-month deposits of the participatory banks and financial institutions.
Any individual or institutions wishing to purchase the Islami Bond should participate in the bidding through any Islamic bank or financial institution.
There will be no limit of bonds for bidding; instead the bidders will be allowed to submit the bidding document as per their own demands.
Currently, eight Islamic banks and two NBFIs are running their businesses across the country.
BBN/SSR/AD-27Dec14-8:47 pm (BST)