Karachi June 17 2025: Pakistan Stock Exchange Limited informed that K-Electric Limited, a listed company on the Exchange, has applied for listing of its rated, unsecured, short-term Sukuk Certificates on the Exchange.
The total issue size of the PKR 3,000 million out of which PKR 1,000 million have been issued to the Pre-IPO investors and PKR 2,000 million are being issued to the General Public (inclusive of Green-Shoe option of PKR 1,000 million) by way of Public Offer through this draft prospectus.
The Sukuk Certificates will be offered in denominations of PKR 10,000/- or multiples of PKR 10,000/-, with a minimum investment requirement of PKR 50,000/- (i.e. for 5 Sukuk Certificates).
The Sukuk Issue has a profit rate of 0.20% over 3 -month KIBOR. Profit will be payable monthly through two possible modes of profit payments: i. Monetary payment, via bank transfer etc.; or ii. Adjustment in a customer’s K-Electric utility bill.
Only those investors whose K-Electric bills fall in the below two consumer and tariff categories will be eligible for adjustment in their bills.
Provisional profit for the Sukuk Issue will be paid on a monthly basis, with the first profit payment due and payable at the end of the first (1st) month from the Issue Date, and subsequently every month thereafter. Profit will be calculated on the basis of an applicable Profit Benchmark by taking the actual number of days in a year (365 days or 366 days in case of a leap year) on the outstanding balance of the Sukuk Amount.
The primary purpose of utilization of the Sukuk Issue proceeds is to fund routine working capital requirements of the Company that primarily arise due to timing differences between outflows and the requisite inflows. Working capital requirements include fuel payments and power purchases which will be partially funded by the proceeds from the Sukuk Issue.
KES Power Limited (the holding company) holds 66.40 percent (2023: 66.40 percent) shares in the Company. KE is the only vertically integrated power utility in Pakistan. In addition to its own generation fleet comprising of six generation plants with an installed capacity of 2,817 MW, KE has arrangements for over 1,600+ MW from external sources including the National Grid. Besides this, as of June 30, 2024, the Company’s transmission system comprises of 1,394 km of transmission lines, 74 grid stations, and 184 power transformers. Moreover, KE has a distribution network of 2,112 feeders, 31,422 PMTs, distribution capacity of 8,964 MVAs supplemented by 11,298 km of HT lines.
Historically, the Company was a state-owned entity. In 2005, a consortium including Al Jomaih Group (a conglomerate based in Saudi Arabia) and National Industries Group (a business group based in Kuwait) acquired a majority shareholding in KE from the Government of Pakistan through an SPV named KES Power. In 2009, Abraaj Capital (“Abraaj”), a private equity firm based in Dubai, acquired majority equity stake in KES Power and accordingly assumed management control of KE via Infrastructure and Growth Capital Fund who joined the consortium as one of the investors.
In October 2022, controlling interests in IGCF General Partner Limited (“IGCF GP”) and certain limited partnership interests in the Infrastructure and Growth Capital Fund L.P. (Fund) were acquired by Sage Venture Group Limited, a British Virgin Islands-registered special purpose company wholly owned by AsiaPak Investments Limited.
KE was granted a distribution license on July 21, 2003, for distribution and supply of electric power services in its territory for a period of twenty years till July 2023. NEPRA vide determination dated January 19, 2024, granted a Distribution and Electric Power Supplier License to K-Electric for a period of 20 years, effective from 19th January 2024.
