July 14, 2021 (MLN): Pakistan International Airlines (PIA) will issue a 10-year Sukuk, amounting to Rs20 billion inclusive of Rs5 billion greenshoe option.
The purpose of the Islamic bond issue is to meet its permanent working capital requirements and for the settlement of part of its existing financing facilities, both conventional and Islamic.
The Sukuk will come inclusive of a two-year grace period and will be repaid in 96 equal monthly installments. It will be classified as a “public sector Sukuk” and will be privately placed and 100% backed by a government guarantee.
Furthermore, the National Bank of Pakistan, BankIslami Pakistan Limited, and BIPL Securities have been given the mandate to act as joint book-runners for the issue.
BankIslami is also acting as advisor and investment agent for the Sukuk issuance.
The book-building process for the listing of Sukuk has started on July 13, 2021, and will continue till July 14, 2021.
The Sukuk will be allotted on July 16, 2021, and will be subsequently listed on the Pakistan stock exchange by August.
