BankIslami successfully fulfilled all the requirements of Market Maker and was notified by PSX on June 15, 2021 as Designated Market Maker for Pakistan Energy Sukuk I and II. With this notification and completion of regulatory formalities; BankIslami is pleased to have recently become the First Islamic Bank in Pakistan approved by SECP as licensed Consultant to the Issue (CTI) to become Investment Agent & Advisor for Shariah Compliant Debt Securities, both listed and privately placed. BankIslami celebrates this milestone with the local bourse and the market through this magnanimous gathering.
To increase the supply of competitively priced Shariah compliant securities; BankIslami is facilitating and advising Pakistan’s national flag carrier – PIA to raise PKR 20 Billion through GoP Guaranteed, SLR eligible, Privately Placed Listed, Shariah Compliant Sukuk named as “PIA Sukuk-I”. National Bank of Pakistan (NBP) and BIPL Securities Ltd are our partners in this land mark Public Sector Sukuk transaction as Joint Book Runners. We would like to take this opportunity to thank you Ministry of Finance (MoF), SBP, SECP and especially PSX for providing their guidance, support and approvals to make this transaction a joint success. This Sukuk will be issued through a Book building process.
As a Market Maker for the designated securities (PES I & PES II), we will help to add depth in the market for Islamic Fixed Income Securities by taking both long and short positions to create liquidity for these securities. BankIslami applauds PSX’s initiative to allow multiple market makers for a single security because it would not only add transparency to the market but would also tighten the spreads which is very conducive for market participants and investors. As an Islamic Bank, blank sale and short selling are prohibited therefore the Bank, while adhering to Shariah principles, has to maintain an inventory of the underlying Shariah Compliant Debt Securities.
Last year, BankIslami successfully concluded the IPO and listing of BankIslami Ehad Sukuk which happened to be Pakistan’s first listed Additional Tier-1 Modarba Sukuk. BankIslami Ehad Sukuk not only helped the bank in strengthening its Tier 1 capital but also gave the investors an access to Shariah compliant listed instrument. The confidence shown by the investors in BankIslami particularly in the challenging times due to Covid-19 was overwhelming. Currently the Sukuk is being traded on its face value and has an investor base of 185 out of which 30 are institutional investors and rest are individuals.
