Meezan Bank to issue Sukuk worth Rs10 billion

Meezan Bank Limited (MEBL) on Friday announced the issuance of Sukuk worth Rs10 billion by way of public offering or by private placement.

In a communication to the Pakistan Stock Exchange (PSX), the bank said the board of directors in their meeting held on August 12, 2021, resolved that the bank had been authorized to exercise the call option in full in relation to the Tier-II capital Sukuk. However, this will be subject to approval from the State Bank of Pakistan.

In this regard, the Meezan Bank issued Sukuk worth Rs7 billion on September 22, 2016. Now, the bank has been further authorized to issue fresh Tier 2 capital through the issuance of the subordinate instruments in the form of Tier-Sukuk up to the extent of Rs10 billion, inclusive of Rs3 billion greenshoe option.

The fresh instrument would be offered to the general public by way of public offering or to eligible institutional and other investors by way of private placement in terms of the SBP’s relevant rules and regulations, subject to obtaining all applicable corporate and regulatory approvals and completion of necessary formalities.