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. 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.
