HBL, BankIslami receive major share in GIS
KARACHI: Habib Bank Limited and BankIslami have succeeded to receive major shares in Government Ijara Sukuk (GIS) of amount Rs 116.2 billion issued for the first time on the term of Fixed Rental Rate (FRR) for next three years. According to industry sources, HBL got the share of Rs 40 billion whereas BankIslami received a share of Rs 35 billion out of Rs 116.2 billion amount raised by the government against 6.1 percent return.
The rest of the banks are Meezan Bank and Bank Al Habib with Rs 10 billion each and different banks with minimum part. The Sukuk issue is the part of government's raising fund which it has been generating against Jinnah Terminal Airport of Karachi. The government received the bid offer of Rs 245.3 billion against the offer ranging from 5.10 percent to 6.95 percent. According to the industry sources, the central bank will raise overall Rs 315 billion against the security in which one Sukuk of more than Rs 100 billion already issues whereas the rest of the amount will be raised through FRR GIS in April 2016. The Islamic Banking industry is rich of deposits which could help the government to finance the project and share its profit with banks and their depositors though there are strict conditions are involved in terms of Sharia rules.