The Pakistan Stock Exchange organized a gong ceremony to mark the listing of BankIslami Pakistan Limited’s Islamic financial instrument of Ehad Sukuk II, a fully paid up, rated, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Mudaraba Sukuk.
The issue size was of PKR 1,000 million, out of which Sukuks of PKR 850 million (85% of issue size) were issued to the pre-IPO investors and Sukuks of PKR150 million (15% of issue size) were offered to the general public by way of Initial Public Offering, according to a press statement issued by PSX.
The issue price or par value of each Sukuk is PKR 5,000, with an expected profit rate of 1 month KIBOR + 2.5% per annum to be paid out monthly. The instrument has a perpetual tenor. The purpose of the Issue was to raise capital towards the issuer’s Additional Tier I for Capital Adequacy Ratio as per guidelines set by the State Bank of Pakistan.
The Bankers to the issue (for the retail portion) were Meezan Bank Limited, United Bank Limited, and BankIslami Pakistan Limited. The designated Market Maker is JS Global Capital Limited and the Issue Agent is Pak Brunei Investment Company.
The public subscription for the instrument took place on February 20 – 21, 2024.
The public subscription for the Sukuk was highly successful with the Sukuk being oversubscribed by 56.23%.
While the Sukuks offered to the general public were PKR 150 million, the total amount received against the public subscription was PKR 234.345 million. The applications were received by the designated bankers to the issue with a significant number of applications being received via the PSX and CDC e-IPO system as well.
BankIslami Pakistan Limited President and CEO Rizwan Ata along with the Deputy CEO BankIslami, Imran Haleem Sheikh performed the opening bell ceremony amidst the presence of MD & CEO PSX, Farrukh H. Khan and senior management of BankIslami, PSX, JS Global Capital and Pak Brunei Investment Company, to mark the listing of BankIslami Ehad Sukuk II of PKR 1.0 billon on the bourse.
Welcoming the guests at the gong ceremony, Farrukh Khan said the listing of BankIslami Pakistan’s Ehad Sukuk II was a valuable addition to the portfolio of Islamic financial securities available at PSX for investors.
He said, the overwhelming response from investors for this Sukuk as depicted by the oversubscription by 56.23 percent speaks volumes about the investor appetite for such instruments.
He expressed confidence that this would add greater depth and volume in the market as well as increase the options available for investing in the Islamic financial market in Pakistan.— APP
