Pakistan Kuwait Investment Company, as part of a consortium led by MCB Bank Ltd., and comprising of Pak Oman Investment Company Ltd., Al-Hilal Shariah Advisors (Pvt.) Ltd., and Mohsin Tayebaly & Co., has structured, advised, and arranged Rs. 7.5 billion through the issuance of an Islamic short-term Sukuk for Nishat Mills Limited, one of Pakistan’s leading textile manufacturers.
This transaction is significant in its nature as it is the first-ever Islamic short-term Sukuk Issue for Pakistan’s textile sector. The Sukuk issue was oversubscribed by -1.9X due to the investors’ confidence in Nishat Mills Ltd. and on account of the unique and robust structuring of the issue by the MCB-led consortium.
The funds raised through the issue will be utilized by Nishat Mills Ltd. for the procurement of Cotton and other working capital-related requirements.
This milestone Sukuk issuance will help in the further development of Pakistan’s Islamic Corporate finance market and will further encourage investors to participate in Shariah-compliant financing initiatives. The PKIC team has thanked Nishat Mills Ltd., its partners, and the investors for making this issue a resounding success.
