The largest listed corporate sukuk in Pakistan. Proceeds of the Sukuk issue will largely be utilized towards repayment of the Company’s existing long-term debt.
The entire Sukuk issue will have repayment linked to specific receivables from 495 identified industrial customers, which have an extended history of timely payments with the Company and have priority of electricity supply over other consumers. Additional long-term debt of slightly over Rs 9b also enjoys similar charge over these receivables.
The receivables from the earmarked customers provide sufficient margin over the repayments to be made from the same.
Other structural features of the Sukuk include retention of amount equivalent to one-third of the quarterly instalment by the collection agent from the revenues of these 495 customers to meet the upcoming instalment while excess proceeds after meeting the retention requirement will be released to KE each month. The ratings are supported by additional cushion whereby a cash collection mechanism will be triggered if overall entity level debt service coverage falls below a pre-defined threshold.
7-year floating rate instrument @ 3-month KIBOR (Ask Side) Plus 1.0% per annum