Pakistan’s K-Electric Limited Launches Musharakah Sukuk of up to PKR 25 Billion

Pakistan based power utility, K-Electric has launched a secured and listed Sukuk of up to PKR 25 billion for a tenure of seven years including a PKR 5 billion greenshoe option. According to K-Electric, PKR 23.708 billion has been already raised through a pre-IPO placement with the remaining PKR 1.292 billion being offered to the general public.

According to the Sukuk prospectus, the Sukuk has been rated AA+ by VIS credit rating agency and it is expected to offer a return of 3-month KIBOR plus 1.70% per annum, subject to a floor of 2% and a maximum of 25% to comply with Shariah guidelines.

The purpose of this Sukuk issuance is to finance routine operational and capital expenses requir...