K-Electric Limited redeems K-Electric Limited | Islamic Commercial Paper-7 upto PKR 5,400mln
|Amount||PKR 5400 mln|
|Rating Type||Debt Instrument|
Under the Islamic Commercial Paper program, K-Electric previously issued six Islamic Commercial papers, out of which; three (ICP-3, ICP-A & ICP-6) were rated by PACRA. K-Electric issued the seventh unsecured Islamic commercial paper of PKR 5,400mln (ICP-7) to finance the ongoing working capital requirements. The Commercial Paper had a tenor of six months, carried a profit rate of 6MK + 115bps and was scheduled to be redeemed at face value on the maturity date. The instrument due for the final redemption in September-20, has been fully redeemed.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | Islamic Commercial Paper of PKR 5,400bln (ICP-7).
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. Total installed capacity of K-Electric is 2,267MW, having an arrangement with external power producers for 1,400 MW including 650 MW from the National Grids. At end-Jun19, KES Power Limited (KESP) held 66.4% share in K-Electric, while Government of Pakistan owned 24.4%. KES Power majority is owned (53.8%) by Abraaj Capital (Private Equity Group) with the balance held by a group of investors (Al Jomaih, Saudi Arabia and NIG, Kuwait). KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric against a consideration of US$ 1.77bln. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has twelve member board. Mr. Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team.