Pakistan Mortgage Refinance Corporation to Raise PKR 3.5 billion via Sukuk

September 16, 2020

Pakistan Mortgage Refinance Corporation (PMRC), a mortgage liquidity facility set up to assist with long-term funding constraints in Pakistan’s banking sector, will be raising PKR 3.5 billion via a three-year Sukuk offering, including a green shoe option valued at PKR 1.5 billion. PMRC has appointed BMA Capital Management (BMA) to broker the deal according to local media reports.

According to Saad Hashemy, Executive Director of BMA, the Sukuk issuance is unique as it offers a fixed pre-tax yield of 10.25% per annum, adding that as PMRC enjoys a tax-exempt status until 2023, the Sukuk will have a tax break from the 25% full and final tax that is usually applicable to Sukuk issuances.