For the first time the government has raised Shariah-compliant debt worth close to Rs200 billion through competitive bidding at the Pakistan Stock Exchange (PSX). Power Energy Sukuk-II of Rs200 billion is heavily oversubscribed by an amount of Rs139 billion (70 percent) at a rate of six months KIBOR minus 0.10 percent.
Unlike the Sukuk issuance by PHL last year, investors who could participate in this issue included banks, financial institutions, companies or corporate bodies (as per Companies Act 2017), mutual funds, voluntary pension schemes, private funds being managed by the NBFC’s, insurance companies, securities brokers, funds and trusts (as defined in the Employees Contributory funds), and individual investors having net assets of at least PKR 2 million.
By widening the inclusion criteria the government made it possible for more people to participate due to which 170% of the targeted sum of Rs 200Bn was raised. 70 more than the target
After the security is listed, investors throughout Pakistan and abroad can buy or sell units of the Sukuk on the PSX BATS trading platform through their broker. This will provide liquidity and investors will be able to buy or sell the Sukuk in line with their investment objectives.
