Pakistan International Airlines to Issue PKR 20 Billion Worth of Sukuk in July 2021

According to news reports, Pakistan International Airlines (PIA) is set to issue a 10-year Sukuk, worth up to PKR 20 billion, in July 2021, to meet its working capital requirements and to settle a part of PIA’s existing financing facilities. ‘PIA Sukuk-I’ is to be privately issued with a government guarantee and categorised as a public sector Sukuk.

Why it Matters?

The Sukuk has been given statutory liquidity requirement (SLR) eligible status by the Ministry of Finance. Haris Munawar, Head of Investment Banking at BankIslami Pakistan, noted that SLR eligibility is a further benefit for banks and that this is the first public sector SLR eligible issuance for 2021. This would raise the supply of Shariah-compliant securities priced at...