Pakistan is set to launch its first Green Sukuk issuance, amounting to Rs 30 billion, under the Sustainable Investment Sukuk (SI Sukuk) Framework. The auction will take place on Friday, May 16, through the Pakistan Stock Exchange (PSX) auction system.
This marks a milestone in sustainable finance for the country. Last week, the government officially approved the issuance of the Green Sukuk, which is structured to support projects aligned with environmental sustainability, including renewable energy and green infrastructure initiatives.
According to an announcement from the PSX, all Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCMs) of the National Clearing Company of Pakistan Limited (NCCPL) are eligible to participate in the auction.Â
Participants will use their existing credentials for the auction, with a requirement for BCM participants to provide a 10% advance committed amount.
The Ministry of Finance, in collaboration with the Debt Management Office (DMO), the Securities and Exchange Commission of Pakistan (SECP), and the Pakistan Stock Exchange, is leading the issuance process.Â
This inaugural issuance will be executed through an auction facilitated by the Capital Market Infrastructure Institutions (CMIIs), which include the PSX, Central Depository Company (CDC), and NCCPL.
The funds raised through this Green Sukuk will be allocated to green, sustainable, and social projects that contribute to environmental sustainability. These may include renewable energy projects, green infrastructure, and other initiatives approved by the Project Evaluation and Selection Committee based on their environmental benefits.
The Green Sukuk is fully compliant with Shariah principles and aims to foster long-term sustainability in Pakistan’s development sector.
