Pakistan Government has decided to set up Medium Term Note (MTN) programs in order to float both the International Sukuk and Eurobonds initially for one year period in order to attract foreign exchange reserves into the country.
In this regard, the Ministry of Finance has invited financial institutions to submit their proposals individually to work as the Finance Division’s financial advisors for registering, structuring, launching, and executing the MTN programs.
All the interested institutions would require submitting their technical and financial proposals to the Finance Division in two separate envelopes by the 26th of October 2020.
The proposals will include recommendations for the volume of the programme, the duration of the bonds, the inauguration time, the expected coupon and rental rate, and the format and structure of the issuance of the Eurobonds and Sukuk.
The ministry wants to hire the services of two separate consortia for the Eurobonds and Sukuk comprising five financial institutions each. The consortium for the Eurobonds will comprise five conventional banks and it will assist in the issuance of the bonds.
The second consortium, which will assist in the issuance of Sukuk, will have five financial institutions including at least two Islamic financial institutions. The process will take place through open bidding for transparency. The government plans to raise $3 billion by floating Eurobonds and Sukuk.
On September 13, the foreign currency reserves held by the SBP were recorded at $8,600.4 million, up $138 million compared with $8,462.3 million in the previous week.
Overall, liquid foreign currency reserves, held by the country, including net reserves held by banks other than the SBP, stood at $15,898.1 million. Net reserves held by banks amounted to $7,297.7 million.
Source Research Snipers