AIRLINK 176.40 Increased By ▲ 1.04 (0.59%)
BOP 13.54 Increased By ▲ 0.45 (3.44%)
CNERGY 7.49 Increased By ▲ 0.12 (1.63%)
FCCL 45.00 Increased By ▲ 1.13 (2.58%)
FFL 15.21 Increased By ▲ 0.40 (2.7%)
FLYNG 27.00 Increased By ▲ 0.49 (1.85%)
HUBC 133.06 Increased By ▲ 1.58 (1.2%)
HUMNL 13.10 Decreased By ▼ -0.11 (-0.83%)
KEL 4.44 Increased By ▲ 0.04 (0.91%)
KOSM 5.99 Decreased By ▼ -0.01 (-0.17%)
MLCF 57.90 Increased By ▲ 1.48 (2.62%)
OGDC 217.75 Increased By ▲ 0.51 (0.23%)
PACE 5.88 Decreased By ▼ -0.01 (-0.17%)
PAEL 41.60 Increased By ▲ 0.50 (1.22%)
PIAHCLA 16.36 Decreased By ▼ -0.15 (-0.91%)
PIBTL 9.44 Decreased By ▼ -0.08 (-0.84%)
POWER 11.94 Increased By ▲ 0.43 (3.74%)
PPL 184.35 Increased By ▲ 0.12 (0.07%)
PRL 35.20 Increased By ▲ 0.75 (2.18%)
PTC 23.80 Increased By ▲ 0.69 (2.99%)
SEARL 94.62 Increased By ▲ 1.12 (1.2%)
SILK 1.17 Increased By ▲ 0.01 (0.86%)
SSGC 37.44 Increased By ▲ 0.60 (1.63%)
SYM 16.20 Decreased By ▼ -0.23 (-1.4%)
TELE 7.88 Increased By ▲ 0.14 (1.81%)
TPLP 10.83 Increased By ▲ 0.05 (0.46%)
TRG 61.28 Increased By ▲ 1.94 (3.27%)
WAVESAPP 10.75 No Change ▼ 0.00 (0%)
WTL 1.35 Increased By ▲ 0.04 (3.05%)
YOUW 3.76 Decreased By ▼ -0.03 (-0.79%)
AIRLINK 176.40 Increased By ▲ 1.04 (0.59%)
BOP 13.54 Increased By ▲ 0.45 (3.44%)
CNERGY 7.49 Increased By ▲ 0.12 (1.63%)
FCCL 45.00 Increased By ▲ 1.13 (2.58%)
FFL 15.21 Increased By ▲ 0.40 (2.7%)
FLYNG 27.00 Increased By ▲ 0.49 (1.85%)
HUBC 133.06 Increased By ▲ 1.58 (1.2%)
HUMNL 13.10 Decreased By ▼ -0.11 (-0.83%)
KEL 4.44 Increased By ▲ 0.04 (0.91%)
KOSM 5.99 Decreased By ▼ -0.01 (-0.17%)
MLCF 57.90 Increased By ▲ 1.48 (2.62%)
OGDC 217.75 Increased By ▲ 0.51 (0.23%)
PACE 5.88 Decreased By ▼ -0.01 (-0.17%)
PAEL 41.60 Increased By ▲ 0.50 (1.22%)
PIAHCLA 16.36 Decreased By ▼ -0.15 (-0.91%)
PIBTL 9.44 Decreased By ▼ -0.08 (-0.84%)
POWER 11.94 Increased By ▲ 0.43 (3.74%)
PPL 184.35 Increased By ▲ 0.12 (0.07%)
PRL 35.20 Increased By ▲ 0.75 (2.18%)
PTC 23.80 Increased By ▲ 0.69 (2.99%)
SEARL 94.62 Increased By ▲ 1.12 (1.2%)
SILK 1.17 Increased By ▲ 0.01 (0.86%)
SSGC 37.44 Increased By ▲ 0.60 (1.63%)
SYM 16.20 Decreased By ▼ -0.23 (-1.4%)
TELE 7.88 Increased By ▲ 0.14 (1.81%)
TPLP 10.83 Increased By ▲ 0.05 (0.46%)
TRG 61.28 Increased By ▲ 1.94 (3.27%)
WAVESAPP 10.75 No Change ▼ 0.00 (0%)
WTL 1.35 Increased By ▲ 0.04 (3.05%)
YOUW 3.76 Decreased By ▼ -0.03 (-0.79%)
BR100 12,244 Increased By 148 (1.22%)
BR30 37,375 Increased By 548.1 (1.49%)
KSE100 115,094 Increased By 1009.7 (0.89%)
KSE30 35,611 Increased By 353.6 (1%)

Pakistan''''s largest Islamic Bank - Meezan Bank has planned to raise some Rs 7 billion through the sale of Shariah-compliant Tier 1 Sukuk to improve its Capital Adequacy Ratio (CAR). Sources in banking industry told Business Recorder Wednesday that Meezan Bank''''s board had already approved a plan for Sukuk issue earlier this year and accordingly obtained regulatory approval from the State Bank of Pakistan (SBP) for this issue.
The issue will be first Shariah-compliant Tier 1 Sukuk in Pakistan and will be a privately placed, tradable and unlisted based on Modaraba structure. The basic aim of issuance of Sukuk is to meet the regulatory requirement of CAR and after successful issuance of Sukuk, Meezan Bank''''s CAR will improve significantly.
The total volume of Sukuk will be Rs 7 billion including total issue of Rs 5 billion with a green shoe option of Rs 2 billion, which will be sold out in case of oversubscription.
The Sukuk will be offered to select corporate entities, banks, Financial Institutions (FIs) and pension funds, etc. The Sukuk can be subscribed with a minimum investment of Rs 1 million. The tenure is perpetual and can be converted into share as per the State Bank regulation.
Profit on these Sukuk will be paid on a monthly basis. The highly attractive Sukuk''''s expected return will be 3-month Kibor plus 1.75 percent based on profit weightages assigned to the Modaraba pool.
Industry sources said it will be very attractive for Islamic banks, Islamic banking windows of conventional banks, Takaful companies, Modaraba companies, pension funds, Shariah-compliant investment by companies and other entities. In 2016, Meezan Bank had raised Rs 7 billion through Tier 2 Sukuk.
Meezan bank is one of the fastest growing Islamic bank in the country and now the 7th largest bank. For the first quarter ended March 31, 2018 Meezan Bank''''s profit after tax increased by 27 percent to Rs 1.915 billion up from Rs 1.512 billion in the preceding quarter of last year. The bank''''s deposits also roseto Rs 669.559 billion in March 2018.

Copyright Business Recorder, 2018

Comments

Comments are closed.