ISLAMABAD: The government has planned to set up a Medium Term Note (MTN) Program for issuance of US Dollar denominated Eurobonds and Sukuk in the international capital markets.
The program shall initially cover a period of one year, said ministry of finance on Friday.
For the purpose, finance division plans to engaged two consortia, each consisting of five financial institutions, for issuance of Eurobonds and Sukuk under the program. “The selected consortia are expected to guide, advise, manage, coordinate and execute the whole range of activities associated with the program,” the ministry said.
It further said that Consortium – 1 shall consist of five conventional financial institutions and shall assist in issuance of Eurobonds. Consortium-2 shall consist of five financial institutions, including at least two Islamic financial institutions, and shall assist in issuance of international Sukuk.
Explaining the selection criteria for Consortium-1, the ministry said that the financial institution ranked first shall be selected. The financial institutional ranked second shall be given the option to match the lowest evaluated financial proposal. “If it chooses so, it shall be selected as part of the consortium, otherwise it shall be rejected.”
The process shall continue in this manner till five consortium members are selected. In case of a tie, the financial institution having secured higher technical score shall be given the option to become part of the consortium.
Regarding selection of members of Consortium-2, the ministry said that the same process as in case of Consortium – 1 shall be followed except that at least two Islamic financial institutions shall be selected as members of Consortium-2.
The ministry invited proposals for the program to be submitted by October 14, 2019.