Meezan Bank Authorized to Issue Tier II Capital Sukuk Worth Rs. 7 Billion

The board of directors of Meezan Bank Ltd. decided in its meeting on Thursday (12 August) to authorize the bank to exercise the call option in full with respect to their Tier II Capital Sukuk Issue.

The bank submitted a notification to the Pakistan Stock Exchange (PSX) regarding this decision on Thursday.

The statement by the bank read: “In accordance with Sections 96 and 131 of the Securities Act, 2015 and Clause 5.6.1(a) of the Rule Book of the Pakistan Stock Exchange Limited, we hereby convey the following information:

The Board of Directors of Meezan Bank Limited (the “Bank”), in their 95' Board meeting held on August 12, 2021 have resolved that, subject to obtaining approval from the State Bank of Pakistan, the Bank be and is hereby authorized to exercise the call option in full in relation to the Tier II Capital Sukuk Issue in the amount of PKR 7,000,000,000/- (Pak Rupees Seven Billion) issued by the Bank on September 22, 2016”.

The notification also detailed that Meezan Bank is authorized to raise fresh Tier 2 Capital through the issuance of the Subordinated Instrument in the form of Tier 2 Sukuk up to Rs. 10 billion. This amount is inclusive of the Rs. 3 billion green shoe option.

This fresh capital will be raised by offering the Sukuk to the general public through public offering and/or to eligible institutional and other investors via private placement in terms of the State Bank of Pakistan’s relevant rules, regulations, circulars and notifications, subject to obtaining all the applicable corporate and regulatory approvals and the completion of necessary formalities.

Source: Pro Pakistani