BB floats CIBRR-1 Economic Development Sukuk; demand oversubscribed 12.3 times
The auction drew significant participation from banks, financial institutions and investors, including Shariah-based entities, reflecting robust liquidity demand in the Islamic finance segment
The Bangladesh Bank has issued the CIBRR-1 Economic Development Sukuk, the 8th government investment Sukuk, through an auction for financing the Rural Road Bridge Construction Project, amid strong investor demand that oversubscribed the issue by 12.3 times.
The Sukuk, with a face value of Tk 5,900 crore and a tenure of seven years, carries an annual lease return rate of 10.40%, according to a press release issued today (13 May).
According to the central bank, bids worth Tk 72,597.94 crore were received against the issuance, reflecting the 12.3-fold oversubscription. Allocation was made on a pro-rata basis.
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For the first time, the auction was conducted using Bangladesh Bank's in-house Shariah Securities Module (SSM) platform.
The Sukuk is designed to channel Shariah-compliant liquidity into development projects while expanding investment options for Islamic finance participants. It can also be used as Statutory Liquidity Requirement (SLR) eligible assets, and as collateral to access the Islamic Banks Liquidity Facility (IBLF).
Secondary market trading will begin on 14 May 2026, allowing participation from banks, insurers, institutional investors and individuals across Shariah-based and conventional segments.
A total of 1,011 successful bids were placed across retail and institutional categories, including provident funds, mutual funds and deposit insurance schemes, with Tk 441.62 crore allocated to these segments.
The central bank said the Sukuk will support rural infrastructure development and contribute to socio-economic improvement in project areas.
