Exchanging the privately positioned Rs. 6.7 billion sukuk Islamic bonds of K-Electric Ltd will begin on the Pakistan Stock Exchange on Friday (May 12).
The declaration will be exchanged through the Bond Computerized Exchanging Framework (BATS) on the PSX and will be settled through the Public Clearing Settlement Framework.
The motivation behind the issue is to finance the organization’s normal functional and capital use prerequisites.
Sukuk Bonds Term
The seven-year term of the Sharia-compliant bond is reasonable. The floating coupon rate is 170 basis points higher than the three-month Karachi interbank offered rate (Kibor).
The instrument will only be available for purchase and sale by institutionally qualified buyers. Each market lot contains one sukuk certificate with a face value of 100,000 rupees.
K-Electric’s financial performance plummeted in the first three quarters of 2022-23, when it posted a net loss of Rs. 39.4 billion, compared to a net profit of Rs. 1.5 billion a year earlier. The quarterly loss from January to March alone was Rs. 12.3 billion, up 6.7 times from the same period last year.
The Sindh Province Pension Fund was the largest investor in the most recent sukuk issue, investing Rs. 1 billion in the Rs. 6.7 billion instrument, followed by Pak China Investment Company Ltd (Rs. 750 million).
To read our blog on “TPL Corporation’s Rs. 2.1 billion Sukuk Certificates are listed on PSX,” click here.
