KARACHI: The State Bank of Pakistan (SBP) Monday announced that PIA-Sukuk-I will be an approved security for maintenance of Statutory Liquidity Requirement (SLR).

According to a circular issued by the SBP, in terms of Government of Pakistan, Ministry of Finance notification S.R.O. 746(I)/2021 dated May 31, 2021, the privately placed Sukuk to be issued by Pakistan International Airlines Company Limited (PIACL) under the title of PIA-Sukuk-I shall be an approved security for maintenance of SLR under sub-section 1 of section 29 of the Banking Companies Ordinance, 1962.

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Further, SLR eligibility limit, ie, 7 percent on Public Sector Sukuk will be applicable on PIA Sukuk-I in accordance with the provisions of the Circular referred above.

The Pakistan International Airlines (PIA) raised an amount of Rs5.7 billion by book-building process for PIA Sukuk-I at the cut-off price of one-month Karachi interbank offered rate (Kibor) plus 100 basis points.

PIA-Sukuk-I was the first corporate and government-backed Islamic bond of 2021, which can be used for SLR. PIA borrowed this amount for its permanent working capital requirements.

Copyright Business Recorder, 2021