K-electric eyes 7-year tenor for largest corporate sukuk
Proceeds from sukuk will help refinance debt, with Rs18 billion to be repaid to senior lenders including IFC and ADB
PHOTO: REUTERS
Karachi-based utility K-Electric will test a seven year tenor for its latest Islamic bond, a Rs22 billion ($217 million) transaction that would be Pakistan's largest corporate sukuk to date.
Issuance of corporate sukuk is gathering pace, helping broaden Pakistan's Islamic capital market, which in recent years has relied on the government for the bulk of such deals.
Proceeds from the sukuk will help refinance debt, with approximately Rs18 billion to be repaid to senior lenders including the International Finance Corporation and the Asian Development Bank, K-Electric said in a bourse filing.
Last year, the utility raised Rs6 billion through a three-tranche sukuk, investment certificates which follow Islamic religious principles such a ban on interest and gambling.
Previously, Pakistan's largest corporate sukuk was Liberty Power's 12-year, Rs13.5 billion issue done in 2009.
The current pipeline of sukuk includes Pakistan Mobile Communications (Mobilink) and Bank Islami Pakistan.
Issuance of corporate sukuk is gathering pace, helping broaden Pakistan's Islamic capital market, which in recent years has relied on the government for the bulk of such deals.
Proceeds from the sukuk will help refinance debt, with approximately Rs18 billion to be repaid to senior lenders including the International Finance Corporation and the Asian Development Bank, K-Electric said in a bourse filing.
Last year, the utility raised Rs6 billion through a three-tranche sukuk, investment certificates which follow Islamic religious principles such a ban on interest and gambling.
Previously, Pakistan's largest corporate sukuk was Liberty Power's 12-year, Rs13.5 billion issue done in 2009.
The current pipeline of sukuk includes Pakistan Mobile Communications (Mobilink) and Bank Islami Pakistan.