Bangladesh Bank on Wednesday said the government for the first time would issue Islamic investment bonds with tenure of three and six months from January 1.
The BB issued a circular to managing directors and chief executive officers of all scheduled banks and non-bank financial institutions saying that only Shariah-based banks and NBFIs would be allowed to invest in the bonds.
The non-Islamic banks and NBFIs having Shariah-based branches will also be able to invest in the auction for the Islamic investment bonds.
The BB will set profit sharing ratio at the auction for the Islamic investment bonds and the Shariah-based banks and NBFIs will avail the profit in accordance with the PSR, the circular said.
Corporate organisations and individual persons will participate in the auction for the Islamic investment bonds through the Shariah-based banks and NBFIs.
The Shariah-based banks and NBFIs will have to take all types of responsibility for their clients who will participate in the auction.
The banks and NBFIs would give profit to their clients in line with the base rate. The base rate will be calculated in accordance with the temporary profit rate of the term deposit with three-month and six-month tenure at the Shariah-based banks and NBFIs, the circular said.
The Shariah-based banks and NBFIs will be able to submit bid against any types of amount as the government will not set any certain amount of bid for a single auction.
A BB official told New Age on Wednesday that the government had recently revised the regulations on Islamic investment bonds as it would need huge amount of fund from the banking sector in the coming months to implement its mega projects like Padma Multipurpose Bridge.
Due to the revision of the regulations, the government will issue different Islamic bonds to borrow from the Shariah-based banks and NBFIs.
-With New Age input
