Rs 2 billion Sukuk financing to develop industrial park: NIP and EGIBL ink MoU

The Emirates Global Islamic Bank Limited (EGIBL) has been mandated by the National Industrial Parks Development & Management Company (NIP) to act as financial advisor to arrange financing under the Shariah compliant mode of Islamic Sukuk for Rs 2 billion for the development of world class industrial parks in Pakistan.
A memorandum of understanding (MoU) was executed between EGIBL and NIP in this regard here on Thursday, the signing ceremony was attended by senior officials of NIP, EGLBL and the Ministry of Finance. NIP Chief Executive M. Zubair Habib and EGIBL CEO and President Syed Tariq Husain signed the MoU on behalf of their respective organisations.
The NIP, a wholly-owned subsidiary of the Pakistan Industrial Development Corporation (PIDC), has been established as a special initiative of the Ministry of Industries, Production and Special Initiatives to develop world class industrial parks all over Pakistan to support the rapid industrialisation in the country.
The company's first project, Korangi Creek Industrial Park, Karachi, is being developed on 240 acres of land to cater specifically the need to the small and medium enterprises (SMEs) and their clusters. The park is designed to meet international environmental standards and will have the necessary infrastructure, including utilities and all essential amenities. "Its aim is to offer a one-window operation to local and foreign enterprises/joint ventures, which would contribute significantly towards high value addition and the export market", said Zubair Habib at the ceremony.
The proposed financing will be arranged by EGIBL through two-tiered financing consisting of a bridge 'Murabaha' facility with subsequent issue of Sukuk certificates guaranteed by the Government of Pakistan and will be eligible for statutory liquidity reserve (SLR) for Islamic financial institutions.
Syed Tariq Husain said: "The financing structure was developed to best suit the unique needs of the client while ensuring Shariah compliance. We are delighted to have won this important mandate and be part of a project that could revolutionise the industrial sector of Pakistan."
The Emirates Global Islamic Bank Limited, a dedicated Islamic commercial bank, commenced operations in February 2007 with six branches. Incorporated in Pakistan and sponsored by Emirates Financial Holdings (EFH), UAE, and the Al Rajhi family of Saudi Arabia.
Shiekh Tariq Bin Faisal Al Qassimi is the chairman of Emirates Global Islamic Bank Ltd. The bank aims to become a major player in the rapidly growing Islamic banking industry by offering Riba-free yet highly competitive banking products, based on the teachings of the Quran and Sunnah.