Meezan Bank is all set to issue a biggest ever Sukuk of Rs 7 billion issued by a Islamic bank in Pakistan.
The bank’s board of director has given a green signal to its management to meet the capital requirement through Tier II and subordinated Sukuk which will likely to be announced next month.
Through this Sukuk, the bank will raise funds to mitigate risk in order to expand its operations and business in different cities of Pakistan.
A Meezan Bank official said that Sukuk is required for raising funds under State Bank of Pakistan (SBP) and Basel III Guidelines. This can enhance the CAR limit, to grow business with accelerated pace while mitigating financial risk on the backend.
Also, the management is focusing on tapping the growing opportunities with the commencement of China Pakistan Economic Corridor, coupled with increasing inclination of corporate sector towards Islamic Banking in near future.
Meezan Bank is in a fast expansion mode and will likely to continue its pace of operational growth and in the months to come through different financing portfolio.
So far, the assets of the bank increased to more than Rs 200 billion assets whereas it is now seventh largest bank in Pakistan and first biggest full-fledged Islamic Bank. The bank’s deposits increased to reach Rs. 469 billion while its financing portfolio grew to Rs. 201 billion.
The bank has signed a number of projects with different banks and companies, most notably the Rs 100 billion Sukuk for Neelum Jehlum project, investment through Bai-Mujjal in the government Sukuk, and project with Karandaaz.
In the first quarter of 2016, the bank profit after tax increased to Rs. 1.37 billion. The bank is likely to announce its profit in the next few days for the second quarterly ending in June 2016.
Import and export business volume handled by the also bank grew to Rs 121 billion reflecting the strong focus of the bank to facilitate Pakistan’s trade business.
Meezan Bank is also leading consumer financing in the industry including automobile, house, laptop, power generators.
It has widened network of its branches to nearly 550 in more than 300 cities.