K-Electric has announced the launch of Pakistan’s first listed retail short-term Islamic bond, with the public subscription set to open on August 4. The offering, titled the KE Retail Sukuk, allows individual investors — including KE’s own residential and commercial electricity consumers — to invest in the company’s debt instrument for the first time.
The sukuk offers a unique feature that enables KE consumers to apply monthly profits earned from the investment as adjustments to their electricity bills. According to the company, the bond is structured under Shirkat-ul-Aqd, a partnership-based Islamic financing model that ties returns to KE’s core power distribution business.
The subscription is being rolled out in phases. During the current blackout period, only individual investors can participate. From August 18 onwards, institutional investors, including asset management companies, will also be allowed to subscribe. A Rs1 billion pre-IPO phase, targeting industrial clients and high-net-worth individuals, has already been completed.
The company said the sukuk has been reviewed and approved by three independent Shariah boards — HBL, ASAS Shariah Advisory Services, and Mufti Ali Asghar — to ensure compliance with Islamic finance standards.
The initiative is aligned with broader regulatory efforts by the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) to expand access to capital markets and diversify investor participation.
Corporate sukuk remain a small segment of Pakistan’s Islamic bond market, which is dominated by sovereign issuances. KE officials said they hope the retail offering will help bridge that gap and encourage other private firms to explore similar instruments.
