Meezan Bank added another “first” in Pakistan’s Islamic Banking Industry by becoming the Advisor and Lead Arranger for the first ever short-term Sukuk for Kot Addu Power Company Limited (KAPCO).
The short term Sukuk which can be termed as an 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, says a press release.
The introduction of short-term Sukuk by Meezan Bank marks the opening of another much needed avenue for Islamic Mutual Funds which faces a scarcity of short-term tradable instruments. The Sukuk received an overwhelming response from investors, mainly comprising of 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 1600 MW. The Company is an AA+ rated entity and is listed in all three Stock Exchanges of Pakistan.
Meezan Bank is the first and largest Islamic Bank in Pakistan with a branch network of 230 branches in 63 cities across Pakistan and offers a complete range of Islamic banking products and services, including free online banking for all Pak Rupee accounts at all its branches. Meezan Bank’s retail banking network is supported by 24/7 banking services that include over 180 ATMs, internet banking, and a 24-hour call center. The Bank’s VISA Debit card allows its customers to shop at more than 30 million merchants worldwide and withdraw funds from their accounts from more than 1.4 million ATM’s worldwide.
