Dubai Islamic Bank (DIB) has announced that it has arranged sale of Sukuks or Islamic bonds worth $85.3 million for two companies in Pakistan the state-run Karachi Shipyard and Engineering Works (KSEW), and the second-biggest gas distributor in Pakistan, Sui Southern Gas, says a statement. Saad Zaman, Chief Executive Officer of DIB Pakistan and Deputy CEO of Millennium Capital, said that the DIB will sell Rs4.2 billion of Islamic bonds to Karachi Shipyard and Engineering Works, and Rs1 billion of Islamic bonds to Sui Southern Gas. Karachi Shipyard s bonds will be sold in installments, with the first phase floated in early 2007. The DIB is seeking to play a major role in attracting investment from the Gulf countries into Pakistan, particularly in the critical sectors of ports, shipping and real estate, Zaman said. The KSEW Sukuk will be used to finance the upgradation and modernisation of the shipyard and will have the special feature of reserve eligibility for Islamic Banks. KSEW Sukuk will be the only reserve eligible instrument, which will go along a way in the growth and development of the Islamic Banking in Pakistan, the statement said. The Sui Southern Gas Sukuk will be used to finance expansion in the energy exploration area. The DIB also participated in the two Sukuks issued by Sitara Chemicals worth Rs1.725 billion/ US dollars 28.3 million for the expansion of their existing chemical plant and setting-up of in-house power generating facilities.
