KARACHI: The book building process of Sukuk II of Power Holding Limited (PHL), a public sector entity fully owned by the Ministry of Energy, was successfully concluded here on Tuesday by Pakistan Stock Exchange (PSX).
According to a concerned official, the issue was heavily oversubscribed with very attractive rates for PHL. The Sukuk bonds pricing was said to have set at cut-off – 10 bps with six months kibor – 10 basis points; while its private placement managed to attract a diverse group of investors, including banks, Non-Banking Financial Companies (NBFCs), mutual funds, insurance companies, pension funds and High-Net-Worth individuals (HNWIs).
The government has reportedly received bids worth Rs356 billion with mopping Rs200 billion for Sukuk bonds.
This is the first-ever debt issuance through book building in Pakistan Stock Exchange’s history and represents an important milestone in the development of debt capital markets in the country, said the PSX official.
PSX was claimed to be presently playing a key role in helping the government raise financing for infrastructure and to help reduce power sector circular debt with utmost transparency and efficiency.
