Power Holding Ltd to Proceed with Early Redemption of Rs. 400 Billion Pakistan Energy Sukuk

Power Holding Limited (PHL) has announced plans to proceed with the early redemption of its Shariah-compliant Sukuk Certificates, Pakistan Energy Sukuk–I (PESC-I) and Pakistan Energy Sukuk–II (PESC-II), valued at a combined total of Rs. 399.97 billion. The company’s board of directors, in a meeting held on September 24, 2025, authorized the early redemption of both Sukuk issues, which are scheduled for redemption prior to their stated maturities. The two Sukuk, PESC-I and PESC-II, were raised in 2019 and 2020, respectively, with Meezan Bank Limited acting as trustee and investment agent for both issues. The earlier Sukuk issuance, PESC-I, raised Rs. 200 billion, while PESC-II raised Rs. 199.97 billion. Both Sukuk were structured under the terms of agreements that included the Trust Deed, Master Facility Agreement, and Ijarah Agreement. The early redemption of these Sukuk is permitted under Rule 5 of the Pakistan Energy Sukuk Rules, 2019, which the government amended in June 2025. However, the move is contingent on approval from the requisite majority of certificate holders through an extraordinary resolution, as well as obtaining all necessary regulatory approvals. The company’s board resolved that, subject to the necessary approvals, the date for the early redemption of the Sukuk will be mutually agreed upon between Power Holding Limited and Meezan Bank. On the agreed date, the full outstanding principal of Rs. 200 billion under PESC-I and Rs. 199.97 billion under PESC-II, along with any accrued profit or rental, will be redeemed, subject to applicable Zakat and tax deductions. Further, the company has been authorized to issue a Notice of Intent for the early redemption of the Sukuk prior to their respective maturities. Mr. Mahfooz Ahmed Bhatti, CEO of PHL, and Mr. Fraz Qadri, CFO of PHL, have been authorized to finalize the terms with Meezan Bank and execute the necessary documentation to implement the early redemption. They are also tasked with ensuring compliance with all legal and regulatory formalities, including obtaining the necessary approvals from the Pakistan Stock Exchange (PSX) and other relevant authorities.