Al Baraka Bank issues Rs1,500m tier-II Sukuk

PR KARACHI - Al Baraka Bank Pakistan Limited (ABPL) has announced the successful issuance of its ‘A’ rated, unsecured, subordinated and privately placed tier-II Modaraba Sukuk. The Rs 1,500 million Sukuk issue was subscribed by a diversified investor base which included Islamic Banks, Islamic Banking Windows, Takaful Company, Modaraba Company & Asset Management Company. In total, a number of 12 institutional investors participated in the Sukuk issue.

ABPL is part of Al Baraka Banking Group (ABG) which has presence in 15 countries across 3 continents with assets of USD 24.7 billion, equity of USD 2.5 billion, workforce of more than 12,600 employees and a network of over 660 branches.

Based on the financial statements of the Bank for the year ended 31 December 2016, JCR-VIS Credit Rating Agency has upgraded the long-term rating to ‘A+’ and has maintained the short-term rating at ‘A1’ with ‘stable’ outlook.

The Sukuk issue is rated A (Single A) by JCR-VIS Credit Rating Company Limited. The Sukuk has a 7 years tenor, is redeemable at maturity and has a Call Option which is exercisable after 5 years with SBP’s consent. ABPL’s first tier II Sukuk issue of Rs 2,000 million was launched in 2014 as the first of its kind transaction in Pakistan which was successfully subscribed by a large investor base and is due to mature in September 2021.

Speaking on the occasion, Shafqaat Ahmed, CEO of Al Baraka Bank Pakistan, expressed his thanks to all the investors for showing their continued confidence in the bank. He also appreciated the support and guidance extended by the State Bank of Pakistan.

“The successful issuance of our second tier II Sukuk will support Al Baraka’s business growth across all the economic sectors of Pakistan especially in the commercial/SME and consumer finance. The sponsors of Al Baraka Bank Pakistan have full confidence in Pakistan’s economic growth and in ABPL’s future growth plans in Pakistan”, Shafqaat Ahmed added.

ePaper - Nawaiwaqt