Bangladesh starts issuing auction-based Islami Investment Bond

Last updated: January 1, 2015

Dhaka, Bangladesh (BBN)- The government started issuing of auction-based Islami Investment Bonds Thursday, the first working of the calendar year 2015, aiming to facilitate liquidity management of the Shariah-based Islamic banks, officials said.
Six bids amounting to Tk 885 million, offered by six Ismalic banks for three-month Bangladesh Government Islami Investment Bond (BGIIB), generally known as Ismali Investment Bond.
Besides, seven bids amounting to Tk 936 million, offered by six Islamic banks and an Islamic non-banking financial institution (NBFI) for six-month BGIIB.  
All bids were accepted for both tenures of Ismali Investment Bonds with cut-off PSR (profit sharing ratio) 90:10 resulting EPR (expected profit rate) 8.33 per cent, according to the auction result.
Any individual or institutions wishing to purchase the Islami Investment 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-01Jan15-6:11 pm (BST)

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