SBP Identifies 5 Highways as Assets for Sukuk Issues

The State Bank of Pakistan (SBP) has structured five different highways under National High Authority (NHA) as assets to raise funds through Government Ijarah Sukuks in the near future. The assets include highway land along with all constructions and improvements thereon, the details issued by the State Bank of Pakistan (SBP). According to the details, these highways include: The SBP will conduct an auction through which Sukuk Investors will be identified. Non-competitive bidders may also submit their bids for the Sukuk. The Investors will execute the Sukuk Subscription Undertaking to record the commitments of the Investors to subscribe to the Sukuk to be issued by Pakistan Domestic Sukuk Company Limited (PDSCL). Under the Sukuk Subscription Undertaking, the Investors may appoint PDSCL as their agent (“Investment Agent”) for the purchase of the Assets on their behalf and for the purposes set out in the Sukuk Issuance Undertaking. New assets and/or additional shares in the existing asset(s) in the future, subsequent to the reopening of Sukuk, which may dilute/change their ownership share in their assets and create their share in the new/additional assets. In recent years, the government focused on the issuance of Sukuk for raising funds, which is an economical option compared to different government bonds offering low-profit rates. The overall Sukuks of the Islamic banking industry have surged to over Rs. 3 trillion so far.