Ashfaq Hassan Khan, an adviser to the finance ministry, said the government awarded the mandate for the Sukuk, or Islamic bond, to the two groups based on their expertise and past experience with similar transactions.

"Globally, there have been five sovereign Islamic bonds and this group has done all of them," Khan said.

Islamic bonds do not pay interest, which is considered usury by Muslims. Instead they make regular payments based on profits from approved investments.

Khan declined to give the size and tenor of the bond but said a strategy for the road shows will be finalised later this week.

About a dozen major financial and banking groups vied for the mandate of the bond, which market analysts say may be above $500 million with a five-year maturity.