The Shariah compliance government bonds ‘Sukuk’ gets popularity among the investors in Bangladesh as 12.30 times oversubscribed for its 8th draw.

The auction for 8th Bangladesh Government Investment Sukuk (CIBRR-1), aimed at constructing important bridges on rural roads, witnessed this massive response today (Thursday).

The Debt Management Department of Bangladesh Bank organised the auction, which offered a 7-year Shariah-compliant 'Ijarah Sukuk' with a face value of Tk 5,900 crore at an annual rental rate of 10.40 percent.

According to Bangladesh Bank, Shariah-based banks, financial institutions, Islamic windows of conventional banks, individual investors, and provident funds submitted bids totaling Tk 72,597.94 crore. Due to the overwhelming demand, the Sukuk was allocated among investors on a ratio basis.

Notably, this marks the first time the auction was conducted using Bangladesh Bank’s in-house Shariah Securities Module (SSM) software.

The issuance of this Sukuk provides Shariah-compliant banks and financial institutions with a vital tool for liquidity management. Key highlights include-Banks and financial institutions can use these Sukuks to maintain their Statutory Liquidity Reserve (SLR),

Islamic banks and conventional banks with Islamic windows can access the ‘Islamic Banks Liquidity Facility (IBLF)’ from Bangladesh Bank by using the Sukuk as collateral and starting May 14, 2026, individual and institutional investors can buy or sell these Sukuks in the secondary market.

Under the individual investor, provident fund, mutual fund, and deposit insurance categories, a total of Tk 441.62 crore worth of Sukuk was allocated against 1,011 successful bids.

The funds raised through this project, titled "Construction of Important Bridges on Rural Roads (1st Revised) (CIBRR-1)," are expected to play a significant role in improving rural infrastructure and the socio-economic conditions of the project areas.