PSX lists BankIslami’s Ehad Sukuk

KARACHI: The Pakistan Stock Exchange (PSX) celebrated the listing of BankIslami Pakistan Limited’s Ehad Sukuk II with a ceremonial gong ringing on Wednesday, marking a significant advancement in Pakistan’s Islamic financial sector.

Ehad Sukuk II, a fully paid-up Mudaraba Sukuk, boasts a perpetual tenor and a size of Rs1,000 million. Notably, 85 percent of the issue size was allocated to pre-IPO investors, with the remaining 15 percent made available to the public through an initial public offering.

Each Sukuk, priced at Rs5,000, offers an expected profit rate of 1-month KIBOR + 2.5 percent per annum, disbursed monthly. The primary objective behind this issuance was to augment the issuer’s additional Tier I capital in alignment with State Bank of Pakistan guidelines.

Meezan Bank Limited, United Bank Limited, and BankIslami Pakistan Limited served as the bankers to the issue for the retail segment, while JS Global Capital Limited acted as the designated market maker and Pak Brunei Investment Company as the issue agent. The public subscription, held on February 20-21, 2024, witnessed an overwhelming response, with the Sukuk oversubscribed by 56.23 percent, reflecting robust investor confidence.

During the gong ceremony, Rizwan Ata, president & CEO of BankIslami Pakistan Limited, and Imran Haleem Sheikh, deputy CEO of BankIslami Pakistan Limited, presided over the opening bell ceremony alongside Farrukh H. Khan, MD & CEO of PSX, and senior management representatives from BankIslami, PSX, JS Global Capital, and Pak Brunei Investment Company. Farrukh Khan expressed confidence in the growth of Islamic financial securities at the PSX, citing the substantial oversubscription as evidence of investor enthusiasm.