The Pakistan Stock Exchange (PSX) announced that K-Electric, a listed company on the Exchange, has applied for the listing of its rated, unsecured, short-term Sukuk Certificates.

The total issue size is Rs3,000 million, with Rs1,000 million already issued to pre-IPO investors and Rs2,000 million being made available to the general public, including a green-shoe option of Rs1,000 million.

The Sukuk Certificates will be available in denominations of Rs10,000 or multiples thereof, with a minimum investment requirement of Rs50,000 for five certificates.

K-Electric is primarily involved in the generation, transmission, and distribution of electric energy, operating under the Electricity Act of 1910 and the Regulation of Generation, Transmission and Distribution of Electric Power Act of 1997, in accordance with NEPRA regulations.

The company stated that the proceeds from the Sukuk issue will primarily be used to fund routine working capital requirements, which arise from timing differences between cash outflows and inflows.

These working capital needs include payments for fuel and power purchases, which will be partially financed by the proceeds from this financial instrument.

K-Electric has also outlined a $2 billion network investment plan for FY24 to FY30, aimed at expanding grid infrastructure, reducing technical losses, and increasing the share of renewable energy to 30%.

The company is currently developing over 600 MW in solar and hybrid projects, with support from the Government of Sindh and private partners.

Additionally, K-Electric has secured new power purchase and subsidy agreements with the Government of Pakistan to streamline power offtake and improve cash flows.