Banks to face Rs8 billion Sukuk default

KARACHI: Banks in Pakistan were stunned at the information that a major cement company has expressed inability to payback Rs8 billion Sukuk bonds and has asked the creditors to restructure the payment schedule.

Banking sources said in a meeting held on Friday last with the bankers and income fund managers, Maple Leaf which issued the Sukuk, asked the bankers to restructure the financing.

The re-payment of Sukuk is due from June 2010 in eight semi-annual installments, said the sources.