Islamabad: The Securities and Exchange Commission of Pakistan on Friday approved issuance of first-ever listed Sukuk issue by the Karachi Electric Supply Company Limited (KESC) amounting to Rs6 billion.
The Sukuk would be listed on the Karachi Stock Exchange.
A spokesman for the SECP said that the retail issuance of Sukuk was one of the major steps towards the development of Islamic Capital Market in the country. “This listing will create value and liquidity for the Sukuk holders and provide investment opportunities to the investors,” the spokesman added.
The SECP stated that there was no Pre-IPO placement and the entire amount of Sukuk issue would be offered to retail investors.
The SECP has decided that Sukuk would be offered in three types that is Sukuk-1 of up to Rs750m for a tenor of 13 months, Sukuk-2 of up to Rs3, 750m for a tenor of three years and Sukuk-3 of Rs1, 500m for a tenor of five years.
The SECP explained that the subscription period would be for three months. The rate of return on Sukuk-1 will be 1m kibor plus 100bps, Sukuk-2 will be 3m Kibor plus 225 bps and Sukuk-3 will be 3m Kibor plus 275 bps.
The SECP official said that the listing of Sukuk would pave way for development of Islamic and conventional bond market in the country that had remained largely in limited hands in the past.
The SECP said that Sukuk was an efficient way of fund raising and it was expected that more and more companies would come forward and raise funds through listed Sukuk issues. It would contribute towards economic development of the country.