BankIslami Pakistan Limited, while fulfilling its vision of providing innovative Shariah complaint products and services to the customers, proudly announces Pakistan’s ‘First’ Initial Public Offering (IPO) of Additional Tier 1 Modarba Sukuk under the brand name of “BankIslami Ehad Sukuk”, which will be listed and traded on Pakistan Stock Exchange (PSX). The word “Ehad” means an era of new vision, new leadership and also means a ‘Promise” to reaffirm the fact that BankIslami is committed to offer authentic Islamic Banking products and provide Halal returns to the Sukuk investors.
BankIslami Ehad Sukuk offers monthly profit payment at an attractive expected profit rate of 2.75% over 3 Months KIBOR. The rating of Sukuk is ‘A-‘ assigned by PACRA, while long term and short term rating of the Bank is ‘A+’ and ‘A1’. Total size of Sukuk Issue is PKR 2 billion out of which PKR 1.7 billion has already been subscribed by Pre-IPO Investors including 27 prestigious institutions of the country and 45 high net worth individuals.
Public subscription dates for PKR 300 Million IPO are Monday, April 20th and Tuesday April 21st 2020. Minimum investment amount is Rs.5, 000/-. Next Capital Limited, acting as Consultant to the Issue whereas JS Global Capital Limited is the Joint Advisor & Arranger and designated Market Maker. The IPO is fully underwritten by Next Capital Limited and Arif Habib Limited. In addition to BankIslami, 10 more banks have been appointed as Bankers to the Issue to receive the Sukuk subscription. Further, to facilitate and promote online subscription, the eIPO services of CDC and UBL have been obtained. Ehad Sukuk Prospectus and Subscription Form can be easily accessed and downloaded from BankIslami website as well as the websites of PSX, CDC, Next Capital and JS Global.
About BankIslami:
BankIslami Pakistan Limited is one of the leading Islamic banks of Pakistan with a network of more than 340 branches in over 114 cities, offering various Shariah compliant services to its clients. The year 2019 proved to be a remarkable year for BankIslami, as the Bank posted impressive financial results. On the back of an effective business strategy and widespread marketing activity, Bank’s Deposit base grew by 24% to close at Rs.229Bn, leapfrogging industry growth of around 10%.
With an increase in source base of the Bank, total Assets of BankIslami also increased by 31% during outgoing year where funds were efficiently placed towards Islamic Financing, SLR Eligible Investments and Money Market Instruments.
With remarkable increase in overall net revenue of the Bank and moderate cost to income ratio, operating profits of BankIslami during CY19 has increased to PKR 4,630 million which is 9.5 times higher than the operating profit of PKR 439 million posted last year. The Bank, taking a prudent view, booked additional provisioning against delinquent financing and other assets, and posted profit after tax at PKR 1,087 million for the year which is over 4.1 times higher than last year’s profit after tax of PKR 213 million.