Karachi, March 1, 2019: Ministry of Energy issued the First Pakistan Energy Sukuk worth Rs 200 billion on Friday to resolve the circular debt.
This is a Shariah Complaint instrument with the approval of Meezan Bank Shariah Board.
The federal government two months back decided to issue Pakistan Energy Sukuk as a number of power and energy sector are facing cash constraints due to chronic circular debt.
A consortium of Islamic banks is led by Meezan Bank helped the government to structure the Sukuk.
The consortium comprises of Bank Islami Pakistan, Faysal Bank Limited, MCB Islamic Bank, Dubai Islamic Bank, Al-Baraka Bank, UBL Islamic & National Bank Islamic banking.
The Sukuk has been declared Statutory Liquidity Ratio eligible by the state bank.
The sukuk is asset based and comprises of assets of power companies.
The Sukuk is based on Ijarah and has a 10-year maturity with semi annual rental payment.
The Sukuk will provide the much needed liquidity to the Power sector and help the government to resolve the Circular debt crises.
Meezan Bank has purchased Sukuk worth Rs 88 billion, Faysal Bank Limited Rs 35 billion, Bank Islami Pakistan Rs 35 billion, Dubai Islamic Bank Rs 14.15 billion, MCB Islamic Bank Rs 10 billion, AlBarka Bank Rs 8.85 billion, UBL Islamic Rs5 billion and NBP Islamic Rs 4 billion.
Meezan Bank, the consortium leader, is the Pakistan’s best bank and the first and largest Islamic bank, is a publicly listed company with a paid-up capital of Rs. 10 billion.
It is one of the fastest growing financial institutions in the banking sector of the country.
The Bank commenced operations in 2002, after being issued the first-ever Islamic commercial banking licence by the State Bank of Pakistan.
The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 600 branches in more than 150 cities of the country.
Backed by a state-of-the art T-24 core banking system, Meezan Bank provides banking services that include over 590 ATMs, VISA and MasterCard Debit cards, a Call Center, Internet Banking, Mobile Application and SMS Banking facility.
The Bank operates strictly under the principles of Islamic Shariah and is well-recognized for its product development capability, Islamic banking research and advisory services. In order to ensure strict Shariah-compliance in all its products and services, the Bank has established a dedicated Product Development and Shariah Compliance department that operates under the supervision of the Bank’s in-house Resident Shariah Board Member and a Shariah Supervisory Board comprising of internationally renowned Shariah scholars.