Govt to launch Islamic-denominated Ijara Sukuk bond

ISLAMABAD: The government has decided to place 750 acres of the F-9 Park Islamabad as a guarantee for launching the Islamic-denominated Ijara Sukuk bond at domestic and international markets to fetch $500 million to $1 billion for building up reserves and providing budgetary support.

A summary to this effect will be placed before the federal cabinet scheduled to be held under the chairmanship of Prime Minister Imran Khan on January 26. It will be the first time under the PTI rule when the government is going to launch an international Sukuk bond.

The PTI government used to oppose issuance of international bonds when it was on opposition benches. The summary of the Finance Division has been forwarded to the Cabinet Division for seeking formal approval. The government had placed the Jinnah

International Airport Karachi and power distribution companies as guarantees for launching domestic Sukuk bonds last year. The government had also kick-started the process for launching Eurobond to fetch another $1 billion. Now the hired advisors recommended the government to launch an international Sukuk bond as well.

There were 10 banks that participated in the bidding for the selection of a financial adviser for launching the Eurobond including JP Morgan, Citibank, Bank of America, Standard Chartered, Deutsche Bank, Credit Suisse, Bank of China, Dubai Islamic Bank, Emirates NBD and Meezan Bank.