Meezan Bank advises First Ever Islamic Short-term Sukuk

Karachi: Meezan Bank added another “First” in Pakistan’s Islamic Banking Industry by becoming Advisor and Lead Arranger for first ever short-term Sukuk for Kot Addu Power Company Limited KAPCO.

The short term Sukuk which can be termed as Islamic alternative to Commercial Paper was issued by KAPCO to meet its working capital requirements. This first-of-its-kind issue with a tenor of six months was innovatively structured by Meezan Bank on Musharaka (Shirka-tul-Aqd) basis, a press release said Wednesday.

The introduction of short-term Sukuk by Meezan Bank marks opening of another much needed avenue for Islamic Mutual Funds which faces a scarcity of short-term tradable instruments. Sukuk received overwhelming response from investors, mainly comprising Islamic mutual funds, as can be well judged by over-subscription of more than 50% of the issue size.

KAPCO is Pakistan’s largest Independent Power Producer with a name plate capacity of 1600MW, is AA+ rated entity and listed in all three Stock Exchanges of Pakistan. Meezan Bank is first and largest Islamic Bank in Pakistan with branch network of 230 branches in 63 cities, offers complete range of Islamic banking products, services including free online banking for all Pak Rupee accounts at all its branches.

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