F.P. Report
KARACHI: BankIslami became the first Islamic Bank to successfully launch Pakistan’s First Shariah Compliant Commercial Paper (CP) Issue worth Rs. 1.5 billion (including Rs. 500 million green shoe options) for Hascol Petroleum Limited to cater to its working capital requirement. The CP Issue program shall run for tenure of one year, covering two CP issues (each of 6 months) and has a short term rating of A-1 based on Hascol’s entity rating of AA- by JCR – VIS.
Hascol is Pakistan’s second largest Oil Marketing Company (OMC) in terms of volume managed through its state of the art more than 140,000 MT of oil storages and 498 retail outlets spread all across Pakistan including AJK. The Company is listed on Pakistan Stock Exchange with market capitalization of more than Rs. 39 billion.
BankIslami acted as Mandated Lead Arranger & advisor, Issuing & Paying Agent and Investment Agent for this first-of-its-kind Shariah Compliant CP Issue which was innovatively structured based on “Bai Salam cum Wakala” model. The CP issue received an overwhelming response from the investors and was oversubscribed by more than 80% of the issue size excluding green shoe option.
Te introduction of Shariah Compliant Commercial Paper by BankIslami is aimed to broaden avenues for Mutual Funds and other Institutional investors to invest in short-term/fixed income instruments in a Shariah complaint manner.
