Bangladesh Bank

Head Office
Motijheel C/A, Dhaka-1000
Bangladesh
www.bb.org.bd
Phone: 9530010-75 Fax: 9530205

Reference No. DMD-201/2016-773 Date: 10 May, 2016

Chief Executives/ Managing Director,

All Scheduled Banks and Financial Institutions in Bangladesh

Dear Sir,
Auction notice of 03 & 06 month Bangladesh Government Islami Investment Bond
As per the gazette notification number 08.036.014.00.003.2004-128 dated August 18, 2014 of Ministry of Finance,
Internal Resources Division, Government of Bangladesh and DMD circular no. 10 dated December 24, 2014, the auction of
Bangladesh Government Islami Bond having maturity 03 months and 06 months will be held on every Thursday (previous
working day if any holiday) until further notice. The bond will be issued in face value. The main features of the bond and the
auction procedure are as follows:

A. Minimum amount of : BDT 1.00 lac or multiples of BDT 1.00 lac will be the amount in face value.
Bids
B. Eligibility : Islami Shariah based Banks, Financial Institutions and Banks or Financial Institutions having
Islami Banking windows are eligible to participate in the auction. Other institutions and
individuals those are interested to purchase the bond can submit bids through Islami Shariah
based Banks and Financial Institutions having current account maintained with Bangladesh
Bank.

C. Bidding Procedure : Separate Bids shall be submitted for separate maturity period. Bidding amount, Profit Sharing
Ratio (PSR) and Base Rate shall be mentioned in submitting bid form.

D. Profit Sharing : The bidders quote the ratio as PSR at which they want to share the expected profit earnings
Ratio(PSR) with the bond fund.

E. Base Rate : Provisional profit rate of 03 Months Mudaraba term deposit (MTDR) of participating bank or
financial institution will be considered as base rate. The base rate of participating Islami
Banks and financial institution also considered as the base rate of other institutions and
individuals who submit bids through them.

F. Profit Rate and : Cut-off PSR of every auction determined by auction committee shall be applicable for all
frequency of payment accepted bids. Profit shall be paid at maturity to the Bond holder according to cut-off PSR.

G. Transferability : Islami Bonds are freely tradable and transferrable.

H. Determination process : Bids shall be arranged (from highest to lowest) according the profit share of Islami Bond.
of Cut-off PSR Regarding accepted amount and cut-off PSR the decision of auction committee shall be
considered as final.

I. Provisions for non : Non-residents can purchase Islami Bond in same way as described in paragraph B. The
residents purchase value of bonds shall be paid from investor’s fund in Non-resident Foreign Currency
Account maintained with a bank in Bangladesh. After maturity principal and profit shall be
credited to bond holders’ foreign currency account according to prevailing exchange rate.

Bids quoting desired PSR and amount should be submitted through Islami Bond System (IBS) from 10.00 am to
12.30 pm on the auction day. In case of special situation the bid can be submitted through e-mail
(masuma.sultana@bb.org.bd) with permission of Debt Management Department of Bangladesh Bank. The bids shall be
opened at 1.00 pm and result will be announced by 3.00 pm on the same day. The bids submitted in the auction will be
considered as the letter of authorization of the participating Islami Banks/Financial Institutions to debit their current
accounts maintained with Bangladesh Bank.

Therefore, concerned banks/financial institutions are advised to submit bids through their responsible officials.

Yours faithfully,

( Md. Awlad Hossain Chowdhury )

General Manager
Phone: 9530131
e-mail: awlad.hossain@bb.org.bd