Meezan Bank has become the adviser and lead arranger for the short-term Sukuk for Kot Addu Power Company Limited (Kapco), the bank said in a press release on Wednesday. The short-term Sukuk, an Islamic alternative to commercial bonds, was issued by Kapco to meet its working capital requirements.
This issuance, with a tenor of six months, was structured by Meezan Bank on Musharaka (Shirka-tul-Aqd) basis. The introduction of Sukuk marks the opening of a much needed avenue for islamic mutual funds, which face a scarcity of short-term tradable instruments. Kapco sold Rs1.5 billion in Sukuk.
Published in The Express Tribune, August 11th, 2011.