KARACHI: K-Electric (KE) has announced the approval of its Board of Directors for issuance of Sukuk of up to Rs22 billion, including a green shoe option of up to Rs2 billion. The in-principle decision was taken in a meeting held by the Board of Directors of KE in its meeting on 25th June 2014. According to the press release, the issuance is dependent on the completion of all the statutory requirements, including State Bank of Pakistan’s approval for prepayment of foreign currency loan portion, and completing requisite corporate actions. “The proceeds of Sukuk will be primarily utilised to pre-pay the existing long-term debt to obtain benefit of improved pricing and extended maturity profile,” said the KE spokesperson. “In this way, the Sukuk will help in significantly reducing the borrowing cost with a positive impact on company’s profitability and cash flows. It will also help in promoting Islamic capital market in Pakistan.”
Published in The Express Tribune, June 26th, 2014.
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