The Pakistan Stock Exchange (PSX) Lists BankIslami Ehad Sukuk Certificates

The Pakistan Stock Exchange (PSX) announced the listing of BankIslami Pakistan Limited (BankIslami) Ehad Sukuk Certificates with effect from May 14, 2020, whereas its trading has commenced from Friday (May 15)

ISLAMABAD, (UrduPoint / Pakistan Point News - 15th May, 2020 ):The Pakistan Stock Exchange (PSX) announced the listing of BankIslami Pakistan Limited (BankIslami) Ehad Sukuk Certificates with effect from May 14, 2020, whereas its trading has commenced from Friday (May 15).

The President and CEO of BankIslami, Syed Amir Ali, commenced the listing of the Sukuk issue by striking the PSX gong to open the market, in keeping with the tradition at PSX, according to press statement issued by the exchange.

Also present at the occasion were MD PSX, Farrukh H Khan, CFO BankIslami, Sohail Sikandar, Head of Investment Banking BankIslami, Haris Munawar, representative of Next Capital, JS Global and select team members.

In the wake of the Coronavirus pandemic, the listing announcement and striking of the gong has been held with minimal presence of personnel and was broadcast live on digital platforms.

BankIslami Ehad Sukuk Certificates are fully paid up, rated, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Mudaraba Sukuk certificates which will qualify as Additional Tier 1 (ADT-1) Capital.

The Sukuk issue is of Rs2 Billion inclusive of a Green Shoe option of Rs 500 million. The Pre-IPO amount was Rs 1.7 billion whereas the IPO amount is Rs300 Million. The Pre-IPO portion was subscribed by 27 institutional investors and 45 individual investors. The Consultant to the issue is Next Capital Limited whereas the Market Maker, Joint Advisor and Arranger is JS Global Capital Limited.

The publicly placed issue was oversubscribed as stated by the CEO of BankIslami, Syed Amir Ali on the occasion.

, "BankIslami Ehad Sukuk is Pakistan's first ever listed ADT-1 Modaraba Sukuk and the popularity of this Sukuk issue among the potential investors can be gauged by the fact that its IPO was oversubscribed by 1.

07 times despite the lockdown situation amidst the Covid-19 pandemic," said Amir Ali on the occasion.

Welcoming the listing of the Ehad Sukuk on PSX, the MD PSX, Farrukh Khan welcomed BankIslami to the PSX for the listing of their Ehad Sukuk certificates.

Given that there is a dearth of Shariah compliant debt instruments for investors, the listing of the Ehad Sukuk is a step in the right direction for providing investors with shariah compliant investment alternatives, easily accessible through the Stock Exchange, he added.

He further added, "Pakistan Stock Exchange is at the forefront of providing new avenues of investment, whether conventional or Shariah compliant. We aim to provide a transparent & robust trading platform for investors and issuers alike".

On the occasion, the CEO of Next Capital, Mr Najam Ali, said It was of great pride to conclude the IPO and listing of first Additional Tier 1 Sukuk in these challenging and uncertain times.

Investors' response to the IPO during the ongoing pandemic was very encouraging as we managed to conclude the IPO with 127 applications, resulting in oversubscription.

BankIslami Ehad Sukuk Certificates have a floating expected profit rate of 3 Months Kibor plus 275 basis points and their face value is Rs 5000 per Certificate. The profit payments of the Sukuk will only be paid from relevant month's attributable profit of the general pool. The instrument has been rated A- (A minus) by PACRA.