PSX Announces Book Building For Rs. 200 Billion Pakistan Energy Sukuk II

The book-building process of the Rs. 200 Billion Pakistan Energy Sukuk II (PS-II) will commence from April 27, according to the details issued by Pakistan Stock Exchange (PSX).

This is the first-ever state-guaranteed bond being issued through the stock market which will allow individuals besides corporations to make their investments. The purpose of the issue is to fulfill financing requirements including but not limited to settlement of part of the circular debt related to the Power Sector.

The Pakistan Energy Sukuk – II will be secured against a tripartite escrow arrangement between Power Holding Limited (the Issuer), the investment agent and Central Power Purchasing Agency (Guarantee) Limited.

Book Building Mechanism will be used to determine the spread (–/+) in basis points (bps) over a 6-month KIBOR Rate that the issuer will pay on a semiannual basis to the respective investors. The issue shall be privately placed to eligible investors listed below at a profit rate that shall be determined through the Book Building method.

Eligible investors other than eligible individual investors shall be eligible for bidding against a deposit of a minimum of 5% of bid money as margin money. Eligible individual investors shall make payment of the full amount of the intended bid money with the Book Runner, which shall ensure collection of margin money in respect of bids placed by the eligible investors.

One unit of the Sukuk will be of Rs. 5,000. The minimum bid size will be 20 units or Rs. 100,000 (One Lac). Bids can only be made in multiples of 20 units or Rs. 100,000. Bid spread can be entered both on the positive and negative sides in basis points over 6 months KIBOR. An eligible investor can submit multiple bids.

Bidders shall be eligible to bid during May 05, 2020, and May 06, 2020, if margin money/investment amount (as applicable) is credited in the designated bank account of the National Bank of Pakistan by May 06, 2020.

Who can invest in PSE-II?

  • A Scheduled Bank; Financial Institution; a Company or a Body Corporate as defined in the Companies Act 2017;
  • Mutual Funds, Voluntary Pension Schemes, and Private fund being managed by NBFC;
  • Insurer registered under the Insurance Ordinance 2000.
  • A Securities Broker;
  • A fund and trust as defined in the Employees Contributory funds (Investment in listed securities) Regulations 2018
  • Eligible individual investors having net assets of at least Rs. 2.00 million.

Power Holding Limited (PHL), a public sector company wholly owned by the government of Pakistan will issue GoP Guaranteed, 100% SLR eligible, Shariah-compliant, 10-year Secured Sukuk up to Rs. 200.00 billion with a subsequent listing on Pakistan Stock Exchange.

Meezan Bank Limited, Dubai Islamic Bank, and Bank Alfalah Islamic are the joint financial advisors of the Sukuk. Meezan Bank will also act as Investment Agent and Trustee whereas Book Runners are National Bank of Pakistan and Taurus Securities Limited.



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