K-Electric launches Pakistan’s short-term retail Sukuk

KARACHI: K-Electric (KE) has announced the launch of Pakistan’s first-ever retail listed short-term Islamic debt instrument, namely the KE Retail Sukuk.

“The pre-IPO phase of PKR 1 billion, which was specifically designed for KE’s industrial and large commercial consumers, as well as high-net-worth individuals, has already been completed,” the power utility said in a statement.

It said that the IPO round will now open on August 4 for individuals to invest from all across Pakistan, including KE’s residential and commercial consumers. Currently, the IPO is operating in a blackout phase whereby only individuals are permitted to invest. Post 18th August 2025, IPO will be open to all kinds of investors including asset management companies.

“This innovative financial product marks a major milestone in Pakistan’s corporate sukuk landscape and aligns with the vision of the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange (PSX) for promoting secondary capital markets.”

Muhammad Aamir Ghaziani, KE CFO, said: “K-Electric has been a pioneer in Sukuk Issuances by a Corporate Issuer in Pakistan. In 2014, the company successfully issued PKR 6 billion in KE AZM Certificates, which were rated, listed, and secured Shirkat-ul-Milk Sukuks. KE also issued the largest listed long term sukuk of PKR 25 billion in 2020. Since January 2022, KE has issued 33 short-term privately placed Shirkat-ul-Aqd Sukuks to raise financing for working capital requirements. This new first ever short-term retail sukuk further reinforces KE’s leadership in financial innovation and capital market engagement.”