Mughal Iron and Steel Industries Limited has successfully achieved financial closure of Rs. 1.827 billion under first-ever SECP-approved Shirkat Ul Aqd based Islamic Commercial Paper (ICP).
Topline Securities Limited was the Financial Advisor & Arranger, while Al Hilal Shariah Advisors (Pvt) Limited acted as the Shariah Advisors, and Pak Oman acted as Issuing and Paying Agent.
This is a historic occasion in Pakistan’s financial sector whereby new Islamic Shariah-based financial products are being introduced. This Islamic Commercial Paper is the first ever to get its structure approved by the Islamic Shariah Board of the Securities & Exchange Commission of Pakistan (SECP), and leading mutual funds participated as investors in this issue.
The ICP was privately placed and is for the tenure of 12 months, carrying a profit rate of Kibor + 175 basis points.
Mughal Steels is a leading name in Pakistan’s steel industry. The company has diversity in its product slate; Rebars, T-Iron, and Girders, etc.
Furthermore, the establishment of strong brands like ‘Mughal Supreme’ gives a competitive edge to the company. The company has attained a formidable market share by penetrating the retail segment.