First green sukuk bids top Rs161 billion, issue raised to Rs31.98 billion

The government’s first sovereign green sukuk, initially offered at Rs30 billion, attracted bids exceeding Rs161 billion, resulting in an oversubscription of 5.4 times within two hours. Due to the high demand, the issue size was increased to Rs31.98 billion. 

According to media reports, the auction was conducted through the Pakistan Stock Exchange (PSX) and executed by Pakistan Domestic Sukuk Company Limited (PDSCL), a government-owned entity under the Ministry of Finance.

This three-year Ijarah-based sukuk provides semi-annual rental returns and is fully tradable on the PSX. It also qualifies for the Statutory Liquidity Requirement (SLR). Designed to encourage broad participation, the minimum investment was set at Rs5,000, allowing retail investors, institutions, and Roshan Digital Account (RDA) holders to take part.

Proceeds from the sukuk will finance green infrastructure projects, including the Garuk Storage Dam in Kharan, the Naigaj Dam in Dadu, Sindh, and the 26MW Shagarthang Hydropower Project in Skardu. These projects focus on improving water management, expanding renewable energy capacity, and enhancing climate resilience in underserved regions.

Meezan Bank played a central role as joint financial and Sharia advisor and helped develop the Sustainable Investment Sukuk Framework, which the federal cabinet approved in April 2025. 

This framework follows international standards and integrates the United Nations Sustainable Development Goals (SDGs) alongside Maqasid-e-Shariah principles.

To increase market readiness and investor engagement, Meezan Bank organized information sessions and webinars targeting non-resident Pakistanis, financial institutions, asset managers, and ESG investors. 

The bank also partnered with Dubai Islamic Bank Pakistan, BankIslami, and Bank Alfalah Islamic to ensure full Sharia compliance and maintain the sukuk’s structural integrity.