Key points
- New guide aims to make Sukuk issuance faster and cheaper
- Model transaction flows and legal documents included
- 72 Sukuk issues raised nearly $1.1 billion last fiscal year
ISLAMABAD: Pakistan’s corporate regulator has issued a practical guide for companies seeking to raise Shariah-compliant financing through Sukuk, as part of efforts to deepen the country’s corporate debt market.
The Securities and Exchange Commission of Pakistan (SECP) said the guide, titled “A Practical Guide for Corporate Issuers”, would make Sukuk issuance easier, faster and less costly for companies.
The guide provides model transaction flows, sample applications and legal documents to help corporate issuers navigate the Sukuk issuance process.
Pakistan’s Sukuk structures
The regulator said standardised Sukuk structures would reduce legal complexities, issuance costs and the time required to complete transactions.
Sukuk are Islamic financial instruments that allow companies to raise funds in compliance with Shariah principles and provide an alternative to conventional debt financing.
According to the SECP, 72 Sukuk issues during the last fiscal year raised about Rs307 billion ($1.1 billion), highlighting the growing role of Shariah-compliant instruments in the capital market.
The regulator said corporate Sukuk were an important avenue for companies to access Shariah-compliant financing from the capital market.
ALSO READ: Pakistan Regulator Introduces Transparency Compliance Certificates To Boost Corporate Disclosure
The initiative comes as the country seeks to broaden its corporate debt market and diversify financing options available to businesses beyond traditional bank lending.
By providing standardised structures and documentation, the SECP expects the new guide to lower barriers for prospective issuers and encourage greater participation in the Sukuk market.
