Pakistan Stock Exchange has approved the Listing of the Privately Placed, Rated and Guaranteed Sukuks of Rs 3,120 million of Byco Petroleum Pakistan Limited.
The purpose of the Sukuk is to finance capital expenditure towards the expansion of the company’s power storage and processing infrastructure.
It was approved under the regulations governing Over the Counter Market of the exchange related to the listing of Debt Securities issued to Qualified Institutional Buyers through Private Placement which has now been replaced with Privately Placed Debt Securities Listing Regulations w.e.f June 14, 2018.
The said Sukuks will be listed on the exchange w.e.f. Wednesday, September 4, 2018, and trading in the Sukuks will commence one day after the date of formal listing i.e. from Thursday, September 06, 2018 through Bond Automated Trading System (BATS).
The eligible investors, who qualify the criteria of Qualified Institutional Buyers (QIB’s), as defined under Regulation No. 5C.2.1. (viii) of Privately Placed Debt Securities’ Listing Regulations, will be allowed to trade in the Sukuks of the Company.
However, the requirement of QIBs in the sale/purchase of the said Sukuks will be checked and maintained at Broker level. The Market Lot will be one certificate of face value of Rs.100,000 each.
It will be settled through National Clearing Settlement System on T+1 settlement basis. National Clearing had assigned “BYCOSC” as the company’s security symbol.
JS Global Capital Limited has been appointed as the Market Maker of the Issue that will provide two-way quotes on daily basis with a maximum spread of 2.5% for the Sukuks, through BATS. JS Bank Limited and Burj Capital Pakistan (Pvt) Limited are going to be the financial advisors and Lead Arrangers for this purpose.
CDC will act as the registrar of the Sukuk. A rating of AAA (triple A) was assigned by PACRA on May 31, 2018 for this instrument while the Sukuk was initially issued on January 18, 2017 and are due to mature on January 18, 2022.
The Sukuk supports a program focused on energy efficiency, expansion of storage facilities leading to increased output and profitability at Byco’s flagship refinery in Balochistan. The refinery is one of the largest in the country and will support the country’s trade deficit. The increased output from the facility will provide additional fuel for energy and transportation to support the country’s economic growth.
