The government is set to put up a Medium Term Note (MTN) Program for the issuance of US Dollar-denominated Eurobonds and Sukuk in the international capital markets.
According to the finance ministry, the said program will initially cover a period of one year. For this purpose, the finance division plans to engage two consortia, each consisting of five financial institutions.
“The selected consortia are expected to guide, advise, manage, coordinate and execute the whole range of activities associated with the program,” said a statement.
Consortium – 1 shall consist of five conventional financial institutions and shall assist in the 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.
Whilst explaining the selection criteria for Consortium-1, the ministry said that the financial institution which will be ranked first shall be selected for the purpose. The financial institutional ranked second will 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 until five consortium members are selected. In case of a tie, the financial institution with a higher technical score shall be given the option to become part of the consortium.
Regarding the selection of members of Consortium-2, the same process as in the 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 has invited proposals for the program and they are to be submitted by October 14, 2019.