K-Electric to Issue Sukuk of Rs. 12 Billion

K-Electric (KE) will issue a Sukuk of up to Rs. 12 billion in order to raise funds for its development project. According to a stock filing, the utility company has received approval from its board of directors for issuing a Sukuk worth Rs. 12 billion with a green shoe option of Rs. 4 billion. The Sukuk is secured and privately placed listed subject to completion of all statutory requirements and obtaining all regulatory approvals and completing requisite corporate actions. The proceeds of Sukuk will be primarily utilized to fund the permanent working capital requirements and ongoing routine capital expenditures and operating expenses of the company, the stock filing added. In the past, KE also raised funds through issues worth up to Rs. 25 billion. The power utility company is working on its various projects of electricity generation and the development of transmission and distribution infrastructure.