PSX Lists Rs. 2.1 Billion Sukuk Certificates of TPL Corporation

Pakistan Stock Exchange (PSX) notified the listing of Privately Placed, Rated, and Secured Sukuk Certificates (SCs) of Rs. 2.190 billion of TPL Corp Limited on the exchange w.e.f. Thursday, September 22.

The trading in the SCs will commence on Friday, September 23, 2022, through Bond Automated Trading System (BATS) and will be settled through National Clearing Settlement System (NCSS) on a T+1 basis.

The SCs have a tenor of five years and offer a floating coupon rate of 3 months KIBOR plus 225 basis points. BankIslami Pakistan Limited is acting as the Investment Agent for the Issue. Only Qualified Institutional Buyers (QIBs), as defined in Chapter 5C of the PSX Rule Book, are allowed to trade in the SCs of the Company.

The market lot will be one Sukuk Certificate of the face value of PKR 100,000/- each. The investors in the certificates are Bank of Punjab, U Microfinance Bank, AKD Islamic Income Fund, BankIslami, JJS Bank, Bank Al Baraka, PIA Provident Fund Trust, and Habib Islamic Income Fund.

The structure of Sukuk Certificates will be based upon Musharakah under Sharikat al Aqd.

TPL Properties Limited (72,500,000 shares) and TPL Trakker Limited (35,000,000 shares) will be securities to pledge to the trustee. The Issuer shall at all times be required to maintain at least a thirty percent (30%) margin. The company will establish and maintain ‘Debt Payment Accounts’ (“DPA”) with the [Account Bank (TBU)]. The DPA will be held under exclusive lien for the benefit of the Participating Institution(s).

There will be Takaful guarantees to cover the first year’s quarterly profit payments of up to Rs. 75 million each quarter. If the issuer is unable to fund the DPA as mentioned above, the Investment agent will have the power to call the guarantee 2 days prior to the profit payment date.

Profit will be payable Quarterly in arrears calculated on a 365-day year basis on the outstanding Principal amount. The first such profit payment will fall due Three (03) months from the Issue date and subsequently every Three (03) months thereafter.