February 14, 2020 (MLN): Govt of Pakistan will issue the second Energy Sukuk worth Rs 200 billion through the consortium of Islamic Banks, aiming at easing off the burden of longstanding circular debt issue faced by Pakistan’s economy.
The issuance of Shariah bond will become a breather for the power sector, providing the much-needed liquidity.
Regarding transparency of Sukuk II, the ministry of finance has invited financial institutions to submit their term sheets through open bidding. The interested institutions will have to submit their proposals by February 14, 2020, i.e. today.
It is prudent to mention that the bids will be opened on Monday 17, 2020.
According to sources, the Federal government chose Meezan Bank and Habib Bank Limited as the lead arrangers, helping the government to structure the second Sukuk.
The bond will have a 10 year maturity period. It is expected that the profit rate will be based on KIBOR plus less than 100 basis points.
Further, Sukuk II will be issued by mid of March, sources said.
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