Karachi-based utility K-Electric will test a seven year tenor for its latest Islamic bond, a Rs22 billion ($217 million) transaction that would be Pakistan’s largest corporate sukuk to date.
Issuance of corporate sukuk is gathering pace, helping broaden Pakistan’s Islamic capital market, which in recent years has relied on the government for the bulk of such deals.
Proceeds from the sukuk will help refinance debt, with approximately Rs18 billion to be repaid to senior lenders including the International Finance Corporation and the Asian Development Bank, K-Electric said in a bourse filing.
