News Column

Pakistan's Central Bank outlines Sukuk plan

June 18, 2014

The State Bank of Pakistan has announced plans to issue a three-year Sukuk Al Ijarah. The sale and lease-back Ijarah contract will be backed by Highway Land together with all structures, fixtures, construction and improvements thereon (M-3). The M-3 is a 52km long strip of motorway situated in Punjab, connecting Faisalabad with M-2 near Pindi Bhattian.

Profit rate on the Sukuk will be the rental rate benchmarked against the latest weighted average yield of the 6-month Market Treasury Bills or 6-month PKRV.

All Islamic banks and commercial banks with Islamic branches are designated as primary dealers in the auction. However, the Central Bank has not said how much it aims to raise and has also yet to set a date for the issue.

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Source: CPI Financial

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