KARACHI: BankIslami has successfully completed the initial public offering (IPO) and the listing of BankIslami Ehad Sukuk II, a statement said on Thursday. This perpetual instrument, with an issue size of Rs1.0 billion structured on the basis of Islamic principles of Mudaraba, qualifies as additional tier 1 capital for the bank.
The Sukuk issue size of Rs1 billion, which included a pre-IPO portion of Rs850 million, was subscribed by 550 investors. It is worth noting that the IPO portion of Rs150 million was oversubscribed by an impressive 1.56 times, with a majority of applications received through elPO channels of the Central Depository Company (CDC) and Pakistan Stock Exchange (PSX).
The Sukuk is now officially listed at the PSX under symbol BIPLSC2, with JS Global Capital Limited appointed as the market maker to enhance liquidity for this instrument. BankIslami Ehad Sukuk II offers a compelling monthly profit payment at an expected profit rate of 2.50 percent over one-month Karachi interbank offered rate. The Pakistan Credit Rating Agency (PACRA) has assigned a 'A' rating to the Sukuk, while the bank holds a 'AA-' long-term and 'A1' short-term rating, underscoring its strong standing in the market.