Tier 2 Capital Sukuk Worth PKR 10 Billion to be Issued by Meezan Bank

According to a regulatory filing on Pakistan Stock Exchange on the 13th of August 2021, Pakistan’s largest Islamic Bank, Meezan Bank, intends to issue PKR 10 billion via Sukuk by way of public offering or private placement.

Why it Matters?

The proceeds of this issuance are to be counted towards the Tier-II capital of Meezan Bank. The issuance also includes a PKR 3 billion green-shoe option, which grants the bank the right to raise more funds than originally planned.

Details

Meezan Bank is also exercising its call option with regard to an earlier Tier-II capital Sukuk of PKR 7 billion that was issued in 2016. The call option provides the right (but not an obligation) to buy back the 2016 Sukuk, prior to its ma...