Meezan Bank Limited serves as lead Joint Financial Advisor
for Pakistan's inaugural PSX Sukuk issuance
Meezan Bank Limited, a trailblazer in Islamic banking,
achieved a significant milestone by serving as the lead Joint Financial Advisor
for Pakistan's inaugural PSX Sukuk issuance. The groundbreaking auction,
conducted on December 9, marked the first-time sale of a 1-year GoP Ijara Sukuk
(GIS) through the Pakistan Stock Exchange Limited (PSX).
In addition to Meezan Bank Limited, other Joint Financial
Advisors included Dubai Islamic Bank (Pakistan) Limited, Bank Alfalah Limited
(PSX: BAFL), and Bank Islami Pakistan Limited (PSX: BIPL). The auction aimed to
raise Rs30 billion and exceeded expectations, with bids totaling Rs478.78
billion, making it oversubscribed by more than 13 times the anticipated value.
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Out of the received bids, an accepted total of Rs36.068
billion was settled at a cut-off yield of 19.52%. The Sukuk has a tenor of 364
days, providing investors with a short-term Shariah-compliant investment
opportunity.
Looking ahead, two more auctions are scheduled, with targets
of Rs30 billion each, set for January 23 and February 20, according to the
auction calendar.
This historic issuance not only underscores the strong
demand for Shariah-compliant investments but also grants retail investors
access to ethical financial instruments. The auction's remarkable success
reflects investors' confidence in Pakistan's economic stability.
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It's noteworthy that the government, through this auction,
achieved financing at a rate almost 2.5% lower than the prevailing Policy Rate,
resulting in a savings of Rs750 million in a single issuance.
The inauguration ceremony at the Pakistan Stock Exchange,
attended by caretaker Prime Minister Anwar ul Haq Kakar and Finance Minister
Dr. Shamshad Akhtar, emphasized the government's commitment to promoting
Islamic finance and inclusivity in financial markets. This initiative aligns
with the government's dedication to implementing the Federal Shariat Court’s
decision for a transition to a Riba-free economy.
Meezan Bank continues to lead in Islamic finance,
prioritizing financial inclusivity and pioneering innovative solutions in the
industry.
Source: Mettis Global