Karachi: The State Bank of Pakistan (SBP) has structured five highways as assets to raise funds through government Ijarah Sukuks in the near future, news sources reported on October 17.
The government, in this regard, will soon conduct an auction for competitive bidding to identify eligible investors. The highways are being operated by the National Highway Authority and include the following:
Moreover, the SBP will conduct bidding as per the criteria set for the bidders. The following provisions have been outlined in this regard:
• Non-competitive bidders may also submit bids for the Sukuk.
• The Investors will sign the Sukuk Subscription Undertaking (SSU) to document their pledges to subscribe to the Sukuk issued by Pakistan Domestic Sukuk Company Limited (PDSCL).
• The Investors may designate PDSCL as their Investment Agent under the SSU to buy assets on their behalf and for the purposes specified in the Sukuk Issuance Undertaking.
• After the reopening of Sukuk, new assets and/or extra shares in the current asset(s) may dilute or modify their own share and create their share in the new or additional assets.
In recent years, the government has concentrated on issuing Sukuk to raise finances, which is more cost-effective than other bonds with low-profit rates. So far, the Islamic Sukuk bond industry stands at a PKR 3 trillion mark.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
