The government has decided to raise funds by structuring Islamabad Airport as the asset for an upcoming Sukuk.
It has already structured two airports in the separate cities of Multan and Lahore for the raising of funds through Sukuks (Sharia-compliant bonds or Islamic financial certificates). Industry experts said that the government may issue a high-value Sukuk against these three airports.
According to the circular issued by the State Bank of Pakistan (SBP), after the addition of New Asset(s) and execution of the Asset Commingling Declaration, the Sukuk assets will include Allama Iqbal International Airport, Multan International Airport, and Islamabad International Airport.
Moreover, as per the provision of the transaction structure, an additional undivided share of new assets may be purchased (individually or jointly) at the time of reopening and added to the Sukuk Asset(s) periodically via single or multiple reopening transactions in line with the approved mechanism.
The circular stated that in the event of future re-openings on the above-mentioned assets, the Title Agent will be the Pakistan Civil Aviation Authority (PCAA), which is also the Title Agent in the case of initial issuances.
Sukuks were previously issued against Karachi International Airport, and now three more airports are being utilized as assets for Sukuks.
